Consultancy on Handling Client Savings

Abler Nordic invests in financial inclusion (see ablernordic.com for more background). The current TA package is to strengthen the capacity of several of its partner-FSPs. There is a perceived interest among them and they will be contacted if the proposed TA project is approved. The work on savings will be different per institution. This depends on the FSP’s experience in handling savings and clients (including digital contact options) and how it manages its finances (including liquidity management). The proposed assistance therefore consists of several modules, which can be used as needed by partner-FSPs

Technical Assistance Rationale:

Savings are important for low income people as it provides them a reserve against economic set-backs, helps smoothen consumption over time and allows them to build their asset base. Savings also provide FSPs low cost liquidity. Hence, providing appropriate saving services strengthens clients’ and FSPs’ financial stability.

Attracting savings requires a license from the financial authorities and solid handling capacity to ensure a smooth in- and outflow of the savings (including proper liquidity management). Handling and managing savings is done differently than credits, although it may involve the same staff.

The presented work is to help partner-FSPs set-up or improve their savings offer. This should lead to broader financial services to clients. It should also lead to more cost effective funding for FSPs than external finance, especially if savings are in local currency. The proposed assistance is therefore reckoned to help support Abler Nordic’s goals of:

• Increased access to responsible, relevant and affordable financial services focus of the work as savings broaden the financial relevancy of FSPs for their clients.
• More stable income and better resilience to climate- and other shocks.
• Opportunity for self-employment, job-creation and increased income.
• Contribute to women’s economic empowerment through financial inclusion second focus of the work as gender issues are taken into account for the work at hand.

Scope of Work:

Module 1: savings license (for FSPs that do not yet have a license to attract savings).

Module 2: strengthen the FSP’s savings approach.

Module 3: train staff.

Module 4: manage savings.

Read Full Description