12 Changing Lives
a popular group savings and lending mechanism with each member contributing regularly to a cash pool that they borrow from on a rotating basis . The pool is patronized by women as it allows them to form groups with other local women or with fellow local church-goers . In a traditional Savings Club , the members deposit cash on a daily / weekly basis in a box with three locks ( keys of these locks are with three different members ). Due to use of cash , traditional Savings Club have multiple operational challenges related to handling cash , ensuring security , maintain transparency and keeping records .
User Story : Chad
Tigo Cash in Chad has introduced a Savings Club service dubbed Tigo Paare . Sales Women in Chad ( involved in importing , transformation and resale of products from Lake Chad ) contribute daily to Tigo Paare group account . The collected money is used to fund a
6 member ' s shop or project each month
Mobile money providers such as EcoCash Zimbabwe , Tigo Chad and Airtel Money Uganda have introduced mobile moneybased Savings Clubs to overcome these challenges . Any registered mobile-money customer can set-up and participate in a Saving Club . The group chairman initiates account opening via mobile and invites members to join in . The chairman also selects members ( usually three ) who approve of funds being withdrawn via multiple SMS sign-offs . All members receive SMS for any activity on group and can also check club ' s account balance anytime . To earn interest , the money in Savings Club is moved to a linked bank account using mobile-phone . Mobile savings club thus provides a more secure , transparent , rewarding and convenient experience for women . It empowers them to take decisions that are beneficial for themselves and their families .
Save Formally
Use an Informal Savings Club
13 % 18 % 26 % 22 %
of women of men of women of men
Source : World Bank Global Findex