For decades, the microfinance sector has been primarily defined by its focus on credit, with the loan officer as the central figure. While credit is undoubtedly a powerful tool, it often overlooks a fundamental need of low-income households: a safe, convenient, and reliable place to save money. Savings-led microfinance flips this model, recognizing that regular, disciplined savings are the cornerstone of financial resilience and a stepping stone to prosperity. By first helping individuals build assets, MFIs empower them to manage daily risks, invest in their businesses, and build a buffer against economic shocks. This approach fosters financial discipline and a sense of ownership among clients, leading to more sustainable and impactful outcomes.

This course will provide a comprehensive guide to designing and implementing successful savings-led microfinance models. You will learn how to transition from a credit-centric to a savings-centric approach, leveraging both group-based methodologies and modern digital platforms. By the end of this program, you will be equipped to develop and market savings products that truly meet the needs of your clients, diversify your institution's funding base, and build a more resilient and client-owned financial ecosystem.

Duration: 5 days

Target Audience:

• Microfinance institution (MFI) managers and executives
• Product designers and innovators
• Development and financial inclusion practitioners
• Group leaders and community organizers
• Professionals in charge of digital finance
• Regulatory and policy advisors
• Researchers in financial behavior
• Social entrepreneurs and startup founders
• Professionals in risk management

Objectives:

• Grasp the core principles of savings-led microfinance.
• Understand the key differences between credit-led and savings-led models.
• Learn how to design a profitable and impactful savings product.
• Master the mechanics of savings group formation and management.
• Explore the role of technology and digital platforms in scaling savings.
• Understand the behavioral economics behind savings decisions.
• Grasp the regulatory and compliance requirements for deposit-taking.
• Identify and mitigate risks associated with savings products.
• Analyze the social and financial benefits of promoting savings.
• Develop a strategic roadmap for transitioning to a savings-led model.

Module 1: The Case for Savings

• The importance of savings for low-income households
• The limitations of credit-only microfinance models
• How savings build financial resilience and empower clients
• The business case for offering savings services
• Case studies of successful savings-led institutions

Module 2: Savings Group Models

• The methodology of Village Savings and Loan Associations (VSLAs)
• The structure and rules of a savings group
• The role of a facilitator and group leader
• The mechanics of meetings, savings, and loan disbursement
• The social and financial benefits of group-based savings

Module 3: Designing Savings Products

• Understanding the client's savings needs and behaviors
• Designing flexible and accessible savings products
• The role of minimum balances and interest rates
• How to use behavioral insights to encourage saving
• Differentiating between voluntary and compulsory savings

Module 4: Digital Savings Platforms

• Leveraging mobile money and digital wallets for savings
• The benefits of a digital-first savings strategy
• Designing a user-friendly and secure platform
• The role of biometrics and digital identity
• The future of savings in a digital-only world

Module 5: Behavioral Economics and Saving

• Understanding present bias and hyperbolic discounting
• Using nudges to increase savings rates
• The role of commitment devices and lock-box features
• How social norms and peer pressure influence behavior
• Designing defaults to encourage saving

Module 6: Risk Management for Deposits

• The main risks of deposit-taking for an MFI
• Managing liquidity and solvency
• The importance of robust internal controls
• The role of fraud prevention and security
• Best practices for safeguarding client funds

Module 7: The Regulatory Environment

• Navigating the legal framework for deposit-taking institutions
• The difference between a regulated and unregulated entity
• The role of central banks and financial regulators
• The importance of consumer protection laws
• Compliance with anti-money laundering regulations

Module 8: Marketing and Outreach

• Developing a marketing strategy for savings products
• The importance of building trust and credibility
• Training staff to sell savings rather than just loans
• Engaging with communities and local leaders
• Overcoming cultural barriers to formal saving

Module 9: Measuring Impact and Performance

• Defining key performance indicators (KPIs) for savings
• Measuring the social impact of savings on households
• The link between savings and financial stability
• Using data to improve product design and outreach
• Reporting on social and financial outcomes to stakeholders

Module 10: The Savings-led Future

• The convergence of savings, credit, and insurance
• The role of technology in automating savings
• The potential of savings-led models for social development
• The long-term sustainability of a savings-led institution
• The future of microfinance as a holistic financial service provider

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.