End Term Evaluation of the Scale2Save Programme

Scale2Save Campaign

Micro savings, maximum impact.

Abridged report July 2022

End Term Evaluation of the Scale2Save Programme

Scale2Save Programme created a lasting Legacy:
1.3 million more low-income women, farmers and youth are financially included on the African continent

1.3

MILLION

The World Savings and Retail Banking Institute (WSBI) and the Mastercard Foundation engaged Genesis
Analytics to conduct the end-term evaluation of the Scale2Save programme

The purpose of the evaluation was to provide lessons learnt against key learning questions of the programme related to the supply-side.:

  • How does the institutional model affect the ability to offer low balance savings accounts (LBSAs)?
  • What impact has the programme had on partner Financial Service Providers (FSPs)?
  • How has the Scale2Save programme contributed to the ecosystem?
  • What has been the value of partnerships in the delivery of LBSAs under the Scale2Save programme?
  • What is the combination of supply-side and demand-side drivers that emerge for LBSAs?
  • What factors impeded the ability of partner FSPs in the provision of LBSAs during the Scale2Save programme?
  • What factors influence the sustainability of LBSAs developed under the Scale2Save programme
  • Learnings from the evaluation will be used to inform future efforts of increasing demand and supply for low balance savings accounts and for broader ecosystem learning.


The programme
helped FSPs to
overcome obstacles
that would have
been prohibitive
without the
Scale2Save
team’s constant
support.

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Different Strokes for Different Folks

Scale2Save Campaign

Micro savings, maximum impact.

A Customer Onboarding Comparative Analysis

At its inception in 2016, the Scale2Save Program (referred to as the Program in this report) set out to acquire one million customers through 10 innovative projects across the six countries of Kenya, Uganda, Nigeria, Cote D’Ivoire, Senegal and Morocco.

All 10 projects were uniquely defined by a product/service mix that targeted diverse sectors and market segments of the local economies – ranging from micro, small and medium enterprise (MSMEs) to agriculture to micro-insurance.

As the Program is wrapping up, this publication looks at the strategic operations and tactics applied by the Scale2Save partners in East and West Africa to acquire customers.

An attempt is also made to analyse the quality and impact of the level of effortand investment made, evidently at varying degrees, against the outcomes that were delivered, particularly regarding the experience a customer gets through that first touchpoint

Objective of the Case Study

This case study sets out, ab initio, to validate the dynamic nature of customer targeting and acquisition, and the varying degrees of success that accompany each tactical approach. While not in doubt that in effect, a combination of tactics would ordinarily be desirable to achieve the expected outcomes, it is safe to assume that one or two dominant tactics tend to carry the greatest burden of the customer acquisition drive for any product or service.

Download the Comparative Analysis

September 2022

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Savings and Retail Banking in Africa 2022

Scale2Save Campaign

Micro savings, maximum impact.

New 2022: WSBI survey of Financial Inclusion for micro, small and medium-sized enterprises

Scale2Save WSBI’s programme for financial inclusion, launches today its Savings and Retail Banking in Africa 2022 report. This time, WSBI puts the focus on the state of the focus is on the financial inclusion for micro, small and medium-sized enterprises (MSMEs).
The Savings and Retail Banking in Africa research series aims to help improve access to financial services for financially disadvantaged people in Africa.
The 2022 edition is based upon research conducted with WSBI members in up to 34 countries on the African continent. It was produced in collaboration with FinMark Trust under the Scale2Save programme.
The report targets financial institutions, regulators and donors who deploy financial inclusion initiatives to develop the MSME sector in Africa.

Why the reports foundings are crucial ?

It highlights :
· How national strategies favour financial inclusion of MSMEs
· What services FSPs are offering to MSME
· How FSPs contribute to a successful MSME sector
· How financial services enable access to clean energy
· Supporting MSMEs as bank agents, and
· What impedes better financial inclusion of MSMEs

The report concludes with specific recommendations for regulators and policymakers, financial service providers and market facilitators.

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What constitutes a viable business model for small scale savings?

Scale2Save Campaign

Micro savings, maximum impact.

Problems of high poverty rates and financial exclusion in sub-Saharan Africa, the correlation between them, and low formal savings rates, remain a major concern.

The market potential of various low-income segments to save is poorly understood by many formal financial service providers (FSPs). Customer and potential customer needs – and how much they can and/or wish to afford to pay to meet those needs – are inadequately reflected in FSP’s business models, customer interfaces and interactions. The resulting poor customer experience gives rise to very high incidences of dormancy and inactivity in account usage. This represents a significant drain on bank costs and undermines potentially sustainable business cases in delivering accessible financial services to these segments.

Why reading this new learning paper ?

This paper highlights 3 different business models for small scale savings including key revenues and costs drivers developed by Centenary Bank in Uganda, Lapo Microfinance Bank in Nigeria and Advans Microfinance Bank in Ivory Coast

Download the Learning Paper

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Persona Segmentation Toolkit

Scale2Save Campaign

Micro savings, maximum impact.

Data is an essential tool for creating customer-centric financial products and services that are sustainable for financial service providers and truly work for low-income customers.

To drive inclusive finance in Nigeria, EFInA and WSBI’s Scale2Save programme are launching the Persona Segmentation Toolkit which allows bankers to use the EFInA financial access data, demographic, and socio economic household data in a simple, practical way.
The toolkit is an online interactive data portal to support market development and data-driven product development

The advantages of the toolkit :

  • Determine the size of business development opportunities specifically for under-served market segments, such as smallholder farmers, informal traders, and young people.
  • Offering insights into customer characteristics, such as livelihoods, income, and financial portfolios
  • Support strategic business development discussions and segmented product innovation process.

 

Access Toolkit

A guidebook and video will help financial sector professionals, consultants and researchers to navigate the portal

Watch the VideoBrowse the guidebook

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An opportunity for the banking sector to work with informal savings groups in Morocco

Scale2Save Campaign

Micro savings, maximum impact.

Télécharger l'étude de casDownload the case study

Tontine, an ancestral practice, is tending to modernize : thanks to digital technology

Tontine, an ancestral practice, is tending to modernize thanks to digital technology.
The objective of the research is to conduct a qualitative and quantitative study case based on qualitative and quantitative identifies opportunities related to the launch of a digital tontine offer. Tontine from an ancestral practice to a modernized version thanks to digital technology
Download the study in French or English to access key findings around mobile payment, funding sources, participation to informal savings groups, smartphone and mobile internet penetration in Morocco.

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Leading and managing change to reach low-income savers in Nigeria

Scale2Save Campaign

Micro savings, maximum impact.

Download the case study

Leading and managing change to reach low-income savers in Nigeria | A case study of LAPO MFB June 2022

In August 2018, LAPO Microfinance Bank partnered with the World Savings Bank Institute (WSBI) to develop and implement a change management programme to underpin its launch of the savings product, My Pikin & I (MPI). The five-year programme scale2save (S2S) programme, managed by the WSBI, promotes financial inclusion. Its aim is to aid financial institutions to target those who are financially excluded, and to encourage the unbanked to open accounts and build a savings record giving them access to transaction banking and other financial services such as credit or insurance. When this succeeds, it helps increase self-esteem, self-confidence and entrepreneurship.

LAPO Microfinance Bank, a Scale2Save partner, is a Nigerian lender with over 7,000 staff and more than 500 branches throughout Nigeria, serving over five million clients. In 2018, as part of its collaboration with the Scale2Save programme, it introduced a savings product backed by health insurance and scholarship grants for those maintaining sustained balances.

This was a major mission extension for LAPO; when LAPO lends money as a microfinance institution, a customer arrives at the branch with empty pockets and walks out with cash, leaving the risks at LAPO. but in a savings rationale, the situation is reversed: the customer arrives at the institution with cash aand walks out with empty pockets, assuming the risk that his/her funds will be safeguarded.

To succeed as a deposit-taker requires that the customer has much more faith in a financial institution, to trust it with her or his hard-earned savings. To assume this new role, the institution’s customer advisors must gain understanding of the customer, deploy empathy, and work harder to build the trust of the customer in the institution. Communication must be clear, transparent and consistent.

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Unpacking the customer through demand side data

Scale2Save Campaign

Micro savings, maximum impact.

Téléchargez l'étude de casDownload the case study

WSBI's Scale2Save programme launched the sixth case study of its Savings and Retail Banking in Africa research series. The publication 'Unpacking the customer through demand side data' gives examples of financial service providers who have used public data to develop customer-centric products and services.

Available in English and French, it presents examples of financial service providers (FSPs) who have used data to better understand and serve low-income customers by developing customer-centric solutions. It includes examples from WSBI members Awash Bank Ethiopia, BRAC Uganda Bank Limited and Zambia’s Zanaco.

Why read this case study?

Because it shows that data and research are valuable tools to acquire and retain customers and expand the customer base. This is crucial to attracting new customers in Africa, where informal employment is commonplace.

The development of customer centric products and operations helps ensure that customers who engage with the bank continue to do so, by aligning products with customer needs, and retiring them if they no longer do.

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WSBI shares conclusions of its 6-year programme for financial inclusion

Scale2Save Campaign

Micro savings, maximum impact.

The Scale2Save programme, a WSBI partnership with the Mastercard Foundation, achieved its goal of banking over 1 million people in African countries through 8 innovative projects with local partners. The programme also made important contributions to finding sustainable business models to serve the mass market of low-income people. This is the most recent of a series of initiatives by WSBI to build financial inclusion and resilience for people in vulnerable situations.

Paris, 6 July 2022 – The World Savings and Retail Banking Institute (WSBI)’s programme for financial inclusion, Scale2Save, held today a closing knowledge sharing event in Paris with focus on the achievements of a six-year partnership with the Mastercard Foundation: over 1 million people banked in Africa and a substantial contribution to the understanding of products and services that can boost financial inclusion.

Scale2Save, soon to come to an end, worked with local banks and microfinance institutions in Cote d’Ivoire, Kenya, Nigeria, Morocco, Senegal and Uganda. It implemented eight innovative projects to reach out to the lowest income people. As projects are implemented, Scale2Save also contributes to building knowledge about the key elements of sustainable business models to serve this segment of customers, often underserved or completely excluded from formal financial services.

“Scale2Save theme is ‘Microsavings for Maximum Impact’ because we aim at enabling our partners to find financial solutions that work, and that can be scaled-up to allow low-income people to actively save”, said WSBI Managing Director, Peter Simon, during the event attended by participants from financial inclusion stakeholders from Africa, Latin America, Asia and Europe.

Scale2Save goes beyond banking people towards adding value to the lives of these new customers by finding ways of keeping them engaged and making full use of their financial services and products, to address the common issue among low-income people of not using the accounts offered to them on a regular basis.

The keys to success found though the eight projects include a customer-centric approaches, digitalisation, financial education and literacy, and the use of roving agents and sharing agency infrastructure.

Scale2Save projects are focused on three long time financially excluded groups: women, to close the gender gap as they are more than half of the financially excluded worldwide; youth, because they increasingly make significant contributions to their households; and farmers, as they constitute an important part of many African economies and formal financial services.

Scale2Save current partners are:  Advans Microfinance in Cote d’Ivoire; PostBank in Kenya; Al Barid and Barid Cash in Morocco; LAPO Microfinance and First City Monument Bank (FCMB) in Nigeria; and FINCA Uganda, Centenary Bank, BRAC Bank Limited in Uganda.

“I am absolutely positive that that the Scale2Save partners as well as WSBI and its members are committed to continue their efforts to contribute closing the remaining access gaps”, said Programme Director, Weselina Angelow.

Scale2Save is a six-year partnership with the Mastercard Foundation. It is the most recent in a series of initiatives by WSBI to mobilize its global network of over 7,000 savings and retails banks in favour of financial inclusion. WSBI sees financial inclusion as an enabler to achieve the UN Agenda 2030, to open the doors to economic and employment opportunities for people in vulnerable situations and to build resilience to shocks.

Founded in 1924, WSBI has members who share a business model that has social responsibility at its core and is focused on serving local communities, households and SMEs. WSBI has 65 members in 88 countries. They serve over 1.8 billion customers, have total assets of over 15 trillion dollars, and employ 2.2 million workers.

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Scale2Save brings Ugandan financial stakeholders to commit for financial inclusion

Scale2Save Campaign

Micro savings, maximum impact.

KAMPALA, 28 April 2022 – Key stakeholders of the Ugandan financial ecosystem came together during a Scale2Save knowledge sharing event, which concluded with a joint call to action with concrete steps to boost financial inclusion in the country.

Read the call to action

The signatories of this call to action, and initiative of the World Savings and Retail Banking Institute (WSBI) and its programme for financial inclusion, Scale2Save, are: the Uganda Bankers Association (UBA), Financial Sector Deepening Uganda (FSDU), The Association of Microfinance Institutions of Uganda (AMFIU), The Financial Technologies Service Providers Association (FITSPA), and the Mastercard Foundation.

“We are ready to work with all stakeholders to demonstrate the commitment of the industry, particularly in times of shocks. We are also ready to continue making contributions to the empowerment of low-income customers to seize economic opportunities, build resilience and, ultimately, have a better life”, state the signatories of the document.

This commitment was announced at the end of a 2-day Scale2Save event in Kampala entitled ‘Building resilience and economic empowerment for women and youth’ which brought together some 100 participants. Both the event and the call to action focused on the key drivers of financial inclusion such as customer-centricity, the potential of digital finance and sustainable business models.

Michael Atingi-Ego, Bank of Uganda’s Deputy Governor, described the current state of high financial exclusion of women and youth in the country during his keynote speech at the event.

“When you consider these observations about our lived reality, you start to see the imbalance that Scale2Save is attempting to address here today. This extent of financial exclusion of women and the youth tantamount to trying to balance a three-legged stool on one leg. This is unsustainable in a country that is working towards socio-economic transformation”, he said.

“I am pleased to participate in this event because the Bank of Uganda shares the objective of democratising access to and empowering the users of financial services, not least by championing the National Financial Inclusion Strategy, and through our strategic plan and operations. But like the multilegged stool, it will take the contribution of all stakeholders and partners to bring about universal financial inclusion,” added Mr Atingi-Ego.

Scale2Save is a six-year programme working six African countries including Uganda, where it partners with Centenary Bank, FINCA Uganda and BRAC Uganda Bank. Weselina Angelow is Scale2Save Programme Director. During the event, she presented some of the key lessons learned during the last years implementing financial inclusion initiatives in Uganda.

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