Around the world, savings and loan groups have proven to be one of the best tools to increase financial inclusion, especially for women and smallholder farmers. Through savings groups, members meet and save regularly, 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. The impact is simple and powerful: members can more easily manage household expenses including food, healthcare, and education.

One of Opportunity’s differentiators is our long-term focus on linking savings groups to formal banking. As savings groups mature, formal linkages can be made with financial institution partners like banks and microfinance institutions, giving members a credit history, a financial identity, and the possibility of accessing other financial tools. Digitization of savings groups strengthens the possiblity of that linkage, as it tracks group data in an accurate, efficient way. 

Opportunity savings groups are active in Colombia, Haiti, India, Ghana, Malawi, Nigeria, Rwanda, and Uganda through our initiatives in Microenterprise, Ultra-Poor Graduation, and Agriculture Finance: 

• Savings groups provide training and group support for subsistence businesspeople, providing a secure way to save and loan money
• In the graduation model, participating families join savings groups to learn financial literacy, increase accountability, and deepen social connections
• We reach smallholder farmers outside the formal financial system through existing savings groups, helping them access both good agricultural practices and financial services

Through surveys of farmers in savings groups in Malawi, Rwanda, and Uganda, the team found positive results achieved by farmers who are members of savings groups:

• 73% increased their income
• 74% can meet an emergency expense, showing financial stability
• 85% improved the number and/or quality of meals for the family
• 88% improved their quality of life