A Technical Guide to Savings Mobilization: Lessons from the Credit Union Experience

This paper serves as an instructional reference for an institution interested in designing, marketing, managing and protecting voluntary savings products. It provides a brief overview of:

• Why are savings important for sustainable economic development?
• When is an institution ready for mobilizing savings?
• What do savers look for while investing in saving instruments:
  • Safety?
  • Convenience?
  • Returns?
• How are different kinds of savings products developed and tailored to suit specific target groups?
• What are the three guiding principles for setting interest rates:
  • Market driven competitive savings rates?
  • Positive real return on savings?
  • Cost based loan rate setting?
• How is an appropriate strategy for marketing savings products devised?
• How to manage savings mobilization, ensure liquidity and improve efficiency?

The paper draws from the lessons learned from the field experience of WOCCU technical assistance programs. This is part of the Savings Best Practices project launched by WOCCU to strengthen and expand savings mobilization in underserved communities.