Banked SG members
There are still those who believe that Savings Groups are only for people who are unbanked, meaning people who don't have bank accounts. That suggests that Savings Groups are inferior cousins of banks, and that anyone who has a choice will do their business with a real financial institution, usually with bricks and mortar buildings, accounting departments, internal controls, regulation by the central monetary authority, paid staff, professional management, and a brand and logo.
Some people assume that if someone can have all of that stuff, they wouldn't waste their time with an informal group.
But in fact lots of people with bank accounts are also in informal groups. A series of every-two-years FinAccess demand studies in Kenya show that the category of people who use both formal and informal services just keeps growing. Why is that?
Well, let's find out. If you are banked, and in a Savings Group, (like the people in the photo of the Savings Group run by the staff of FSD Zambia) would you please take a moment and leave a comment below about why that is?
In your comment, please share a bit about your group, and tell us what do you get from the Savings Group that you don't get from the bank, and what do you get from the bank that you don't get from your group? Thanks! I look forward to reading what you have to say about this.