Scale2Save Webinar Series Savings and Retail Banking in Africa | Case Studies 1 & 2
Scale2Save Campaign
Micro savings, maximum impact.
The World Savings and Retail Banking Institute (WSBI) has conducted two research reports, as part of its Scale2Save programme, tracking the progress of retail and savings banks in their financial inclusion efforts across Africa (2018, 2019). These reports found that challenges persist around driving the customer journey within the institution as well as creating partnerships across institutions to offer more low-cost effective products.
In 2020 and 2021, Scale2Save is conducting research on finding solutions to these challenges. The focus has thus turned to producing a series of case studies, each of which dives deep into one theme that an institution may further explore to drive its response to the challenges outlined above. The first Scale2Save case study reports on the impact of Covid-19, and the second focuses on mobile financial services.
WSBI is delighted to invite you to the first online discussion of a series, co-organised with FinMark Trust, about the latest Scale2Save case studies. Join us on 30 March where we will present and debate the first two case studies across WSBI’s African membership.
Le World Savings and Retail Banking Institute (WSBI) a réalisé deux recherches, dans le cadre de son programme Scale2Save, afin de suivre les progrès des banques de détail et d’épargne dans leurs efforts d’inclusion financière en Afrique (2018, 2019). Ces rapports ont révélé que des défis persistent en ce qui concerne la conduite du parcours client au sein de l’institution et la création de partenariats entre les institutions, pour offrir des produits plus rentables.
En 2020 et 2021, Scale2Save réalise des recherches additionnelles visant à solutionner ces défis. Il s’agit de six études de cas, dont chacun des thèmes abordé apporte des éléments de réponses aux défis décrits ci-dessus. La première étude de cas Scale2Save relate l’impact de la COVID-19, et la seconde, qui sera publiée dans le courant du mois de mars, se concentre sur les services financiers mobiles.
Le WSBI est heureux de vous inviter à la première discussion en ligne, co-organisée avec FinMark Trust, sur les deux premières études de cas réalisées par Scale2Save. La réunion aura lieu le 30 mars, date à laquelle nous présenterons et débattrons avec d’autres membres africains du WSBI.
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Scale2Save
A case study on Covid-19: from a customer, retail banking and regulatory perspective
Scale2Save Campaign
Micro savings, maximum impact.
First case study of WSBI's Savings and Retail Banking in Africa research series. WSBI's Scale2Save programme produced this case study on the waking of the Covid pandemic.
The Covid-19 pandemic is the most profound interruption to social and economic activity experienced in much of the world for
more than a century. The scale, timing and exact nature of disruption varies from country to country, but the pandemic has
caused a global recession, millions of job losses, and sharply increased poverty.
The financial sector plays a critical role in softening this macroeconomic shock. As the pandemic and its social and economic impact unfolded this case study aimed at answering the questions:
- How has the Covid-19 pandemic changed banking customer behaviour during the first months?
- How has the Covid-19 pandemic affected banks?
- How have African regulators responded to the pandemic?
Scale2Save
Microfinance bank empowers Nigerian women through financial inclusion
Scale2Save Campaign
Micro savings, maximum impact.
International Women’s Day special report: LAPO addresses financial challenges women face
While conducting business, they often confront a lack of access to affordable credit. Constrained to short-term loans, poor women depend on moneylenders who charge exploitative rates as high as 300% per annum. This worsens their poverty and financial distress.
LAPO, a microfinance bank, looks to help. A Scale2Save partner, they aim to empower women in business, promote savings culture, and to provide easy access to education amongst other benefits. For example, they address financial challenges women face through provision of financial products and services with affordable conditions.
One offer opens credit access to Nigerian women through its “Supporting Female Entrepreneurs (SUFEN)” loan. They promote savings by women through its Scale2save-supported My Pikin & I savings account. The offer primarily targets women who either fall in the low-income bracket, are unbanked, own micro- or small-scale enterprises or living in rural, semi-urban and urban centers.
The account enables existing and prospective clients to start saving with as low as 200 Naira. A multiple of N5,000 saved for three months presents clients the opportunity to qualify for one year of free fire, theft and disability insurance. Saving N60,000 for six months qualifies a client’s child for a LAPO education scholarship. Women able to save N150, 000 for 12 months earn an additional two percentage points on an existing 4.05% interest on their savings. That moves the rate to 6.05% – edging out most banks who compete in this highly populous west African country.
An innovated approach for women
Carefully designed with an extremely low entry requirement of N200, the LAPO My Pikin & I savings account ensures greater numbers of disadvantaged women have product access. The deliberate milestone criteria requirement to enable clients to take full advantage of the various benefits aims at inculcating savings habits in women and to ensure that the target audience are not disenfranchised. The provision of one-year free fire, burglar and disability insurance seeks to provide additional cover to both mother and child to re-assure and elevate their social status as well as self-confidence.
The uniquely designed product focuses on women, and its dynamics – low threshold entry, gradual but consistent savings, as well as milestones to take advantage of benefits – clearly defined to achieve female inclusion. Mother and child benefit from micro-insurance, while the education scholarship gives a needed boost for the young one. LAPO’s “milestone” model encourages consistent savings to be able to take full advantage of the product benefits.
LAPO’s client base, staff levels mostly women
The microfinance bank takes a deliberate and focused attempt to boost women empowerment across clients and staff alike. With more that 4.5 million customers as of January 2020, 73% are women/. Women make up 57% of its 7,476-strong workforce. To ensure its clients and prospective clients enjoy unfettered access to this product, LAPO deploys 1,300 agents, 105 agent banking officers, a dedicated 24/7 call centre and more than 490 branches across 34 out of 36 states within the country. Clients also can take full advantage of its benefits, thereby, defining better adoption and inclusion.
Change your best: Serving women better
A review of LAPO’s My Pikin & I savings account current statistics reveal that women make up 85% of its more than 18,000 client base as of January 2020. Evidencece from data analysed suggests a dramatic change in the way women adopt and use savings as a tool of financial inclusion, economic empowerment and bridging several other forms of social challenges. The products’ education scholarship benefit is one of the factors that motivates them to save. This feature provides some relief for mothers, who not only save to ensure a better future for their family while oftentimes shepherding the education of children living within the household.
Beyond the product, LAPO’s see value in well-trained staff who give support, and to deliver to women exceptional service.
Dr. Godwin Ehigiamusoe, Ph.D., Managing Director at LAPO, said: “Clients adopt savings because LAPO provides value beyond savings. Trust and mutual respect have deepened thanks to a personalised client engagement model. LAPO goes one step further by providing training for micro-businesses to help strengthen their business savvy.
“We take a full-service, committed approach with people who look to us for financial services. From our prompt insurance claims payment follow up, scholarship disbursement to other benefits. Coupled with our regular stakeholder engagement/education guarantee we drive sustained behavioral change. That change uplifts women in their daily lives.”
Scale2Save
Single European Access Point for Financial and Non Financial Information
ESBG welcomes the opportunity to comment on the European Commission's proposal to establish a European Single Access Point (ESAP).
This tool was already listed as one of the sixteen actions to carry out in the framework of the Capital Markets Union. The ESAP has been designed as a very ambitious tool with the aim of collecting financial and non-financial information. ESBG members would like to highlight the need of taxonomies regarding non-financial information. Companies already make an important effort to comply with all reporting’s required at international and national level. Although the Commission mentions in the consultation document that ESAP is a voluntary tool, ESBG believes it is very important to emphasize this feature and in a first stage it should be configured as a voluntary tool.
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Scale2Save celebrates International Women's Day 2021
Scale2Save Campaign
Micro savings, maximum impact.
In honour of International Women's Day, discover how four Scale2Save partners are empowering women and reducing the financial inclusion gender gap in Africa:
In honour of International Women’s Day, discover how four Scale2Save partners are empowering women and reducing the financial inclusion gender gap in Africa:
>> First City Monument Bank (FCMB) in Nigeria
>> LAPO Microfinance Bank in Nigeria
BRUSSELS, 8 March 2021 – International Women’s Day presents an opportunity for Scale2Save and its partners to showcase their stories. That includes how partners serve and empower women through their projects.
Scale2Save project partners have provided Scale2Save with stories to be shared on the day as part of the programme’s aims to raise awareness around the need to mobilise savings among – and strengthen the resilience of – low-income populations. That includes financially excluded women.
There is interest from governments, NGOs and international bodies to learn more about how financial institutions address the needs of women. For example, financial inclusion is featured as a target in eight Sustainable Development Goals.
Scale2Save
Scale2Save celebrates International Women's Day
Scale2Save Campaign
Micro savings, maximum impact.
In honour of International Women's Day, discover how four Scale2Save partners are empowering women and reducing the financial inclusion gender gap in Africa.
BRUSSELS, 8 March 2021 – International Women’s Day presents an opportunity for Scale2Save and its partners to showcase their stories. That includes how partners serve and empower women through their projects.
Scale2Save project partners have provided Scale2Save with stories to be shared on the day as part of the programme’s aims to raise awareness around the need to mobilise savings among – and strengthen the resilience of – low-income populations. That includes financially excluded women.
There is interest from governments, NGOs and international bodies to learn more about how financial institutions address the needs of women. For example, financial inclusion is featured as a target in eight Sustainable Development Goals.
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