Scholars, policymakers, and practitioners of microfinance
are increasingly turning their focus toward devising and offering effective and
accessible savings services for the poor. Not only have experts argued that demand for savings services
greatly exceeds that of microcredit, but many also contend that savings-led
programs and products, with a focus on building assets, may be more effective
than credit in providing a pathway out of poverty.
One creative approach to offering asset-building savings services is to
directly match the savings of low-income, economically marginalized
individuals. Experiments with products and policies involving "matched
savings" have blossomed in recent years as researchers have cited their
positive social, economic, and even behavioral benefits to the poor.
While most of the discussion and experiments involving matched savings,
also known as Individual Development Accounts, has occurred in
developed countries the potential of – and indeed the need for – such
programs is likely as great if not greater in developing countries.
This Global Assets Project
Issue Brief introduces the concept of matched savings in the context of
its potential for reducing global poverty and promoting financial
inclusion. It highlights the design and experience of World Council of
Credit Unions’ (WOCCU) newly launched savings program in Mexico, MatchSavings.org, while exploring opportunities and challenges for this and related matched savings programs in developing countries.
To access the Issue Brief, click on the link at the right.
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