Ecuador: Savings Mobilization in 14 Credit Unions

This case study demonstrates the success of savings mobilization in 14 credit unions in Ecuador. It also establishes a savings profile of members in these credit unions.

The savings mobilization strategies employed by the 14 credit unions in Ecuador all drew on certain fundamental elements. These include:

• Financial services and benefits of savings and credit for members;
• Affordable interest rates;
• High-quality client service;
• Personalized visits and new points of service;
• Positive institutional image;
• Trustworthy managers and directors;
• Longevity of service or presence in the market;
• Informative and promotional campaigns;
• Management appearances in mass communication;
• Contributions to the development of the local market;
• Greater participation in the formal financial market.

A survey of more than 500 members in the 14 credit unions found that they saved a surplus of funds in alternative mechanisms. Systematic programs and marketing would encourage a culture of savings in credit unions and channelize these resources toward credit unions. Finally, the trust factor, image of the institution, and quality of service were the principal reasons for successful savings mobilization by the credit unions in Ecuador.