More than Piggy Banks: Savings Groups Fuel Economic Mobility
Dennys lives with her husband and four children in a small community outside of Cartagena, Colombia. When her family was hit by unemployment, Dennys acted: seeing the women in her neighborhood struggle with their hair, she started selling natural hair treatments. She later learned to make her own products.
She had spotted a need and met it with innovation. She brought in income for her family. However, saving money felt impossible. "I could buy as many piggy banks as I wanted," she recalls, "but whenever I saved something, I ended up spending it." However, her business—and her life— took a new direction when she joined an Opportunity savings group with some of her neighbors. At first, it wasn’t easy. Trusting others and working together took time. However, the financial education sessions helped her, and Dennys and her fellow savings group members began to understand budgeting, cost tracking, and teamwork. Today, Dennys proudly says that she has learned the discipline of saving and gained the confidence to call herself an entrepreneur.
Through the group’s collective activities, she contributes to weekly initiatives that boost savings and strengthen friendships and community unity.
Now, if I need something, I don't think about borrowing from a moneylender; I go to my group."
For Dennys, the program represents much more than financial growth. It symbolizes family unity, restored confidence, and the joy of realizing that change begins with faith and perseverance.
What Are Savings Groups?
Savings groups—sometimes known as Village Savings and Loans Associations (VSLAs), Savings and Credit Cooperative Organizations (SACCOs), or chamas—have proven to be one of the most successful interventions for communities living in extreme poverty. The initiative targets the lowest-income communities—in Colombia, known as strata zero, one, and two.
Savings groups provide financially excluded populations with vital access to savings and loans. Members meet and save regularly and then borrow from that pool of savings, paying interest. Generally, at the end of each year, the groups “share-out” their funds such that savers earn interest.
Over the past three years, we’ve focused on increasing the number of savings groups in Colombia through the Graduation program and independently, including supporting savings groups that serve migrants.
Savings Groups in Colombia: The Numbers
A snapshot of the demographics of savings groups in Colombia:
- 97% live in strata zero or one
- 73% members are women
- 72% don’t have access to formal financial system
- 61% are between the ages of 18-50
- 59% of clients have a special need
- 8% are Venezuelan migrants
Savings groups' members are self-selected and average between 11-19 members. Each group experiences two eight-month cycles, guided by internal rules and an administrative committee. In Colombia, the average loan size range is $40-$46.
How Savings Groups Create Lasting Change
Results include:
- Creation and strengthening of savings habits
- Creation of strong community networks
- Increased resiliency
- Improved financial literacy (savings and loans)
- Training in other topics as identified by each group (e.g., conflict resolution, leadership)
Digital Tools Expanding Financial Access
As of May 2026 in Colombia, we have 453 savings groups with close to 6,000 active clients, $200,000 in savings, and $23,000 in active loans. Over 200 savings groups are digitized on the DreamSave app, enabling more accurate accounting and creating a financial history to make it easier to access formal loans. Financial institution partners Aavance, Banco Union, and Crezcamos provide workshops and product socialization sessions encouraging use of digital wallets, group savings accounts, and certificates of deposit—financial tools and resources that are designed with our clients’ needs in mind and offered to them via trusted financial partners. Offering product socialization, training, and support is key to the successful use of these tools that provide sustainable financial inclusion for the people we serve.
Dennys’ savings group has impacted her life in more ways than financial stability: she now has a group of trusted friends who support each other. Her own confidence and business skills have grown.