Nicaragua: Putting the Framework into Place

This case study describes how three participants of the Nicaraguan Rural Credit Union Program (RCUP) developed frameworks for savings mobilization.

In 1996, The World Council of Credit Unions Inc., (WOCCU) began the RCUP in Nigeria to strengthen credit unions so that they could provide safe and effective savings services. This study presents the experience of three institutions, namely, Avances, Iaguei, and Moderna, all of whom experienced dramatic growth over the years. The techniques they used include:

• Complying with financial disciplines that would protect the value of savings;
• Expanding activities to create images of quality service;
• Building physical structures that were attractive and secure;
• Training employees to be friendly and professional;
• Improving convenience by instituting new operating hours, employing improved technology, and installing communications technology;
• Focusing on image standardization;
• Organizing local and national campaigns supported by inexpensive and efficient publicity;
• Developing a sales force and special promotions to grow membership.

Currently, the credit unions offer seven savings products that are suited to the Nicaraguan market and members' demands. All three credit unions have achieved dramatic growth in membership and savings by offering targeted savings products.