SAVINGS MOBILIZATION STRATEGIES:EXPERIENCES FROM THE FIELD

Training on Expansion Strategies

September 13, 2011RBAP Bldg, Intramuros

SAVINGS MOBILIZATION STRATEGIES

• ATM & Cash Cards

• Tiered Interest Rates

• Lotteries & Raffles

• Prizes & Awards

• Savings Boxes

• SMS Banking

• Incentives for Branches & Staff

• Contractual Savings

ATMs & Cash CardsCard Bank Matapat

Product

- ATM card attractive because of accessibility

- Lowered opening bal to P100

Katipunan Cash Card- Issued by BDO

RB FaceCard

- Issued by GXI

TIERED INTEREST RATE STUCTURE

• Tiered Interest rate structure– Minimum balance to earn interest

• Many rural banks• BPI small value savings product

– P200 to open an ATM account– P500 to earn interest

• BanKO savings product

– Higher interest for higher ADBs• BRI SIMPEDES Savings Product

LOTTERIES & RAFFLES

Should reinforce savings discipline and focus on increasing deposit balances

• Rural Banks in Philippines– “Double Your Balance” – Up to P5,000– Coupons given for each deposit

over P500 and for each P1,000 in ADB over P3,000

– Coupons for every P1,000 additional ADB each month

– Raffle coupon for every P15,000

PRIZES & REWARDS

Focus on keeping savings longer and maintaining higher balances

• Rural bank in the Philippines– School Savings Program– Higher rates for younger

savers– Prizes given at the end of year

for those with balances over P1,000 and P5,000

– Chance for scholarship

SAVINGS BOXES

– Simple locked box offered to small clients– Can reduce costs– Builds on piggy bank concept– Encourages people to save regularly

SMS BANKING

• SMS Reminders are effective– IPA studies for contractual

savings– SMS Pickup requests - Card

Bank– SMS Information Systems –

MyClick Technologies– SMS Banking Systems –

InfoServe– RB FaceCard – automatic

SMS alerts for withdrawals

STAFF INCENTIVESBanco Caja Social– Every six months - award for best national branch– 55% of the points are related to savings mobilization– “best teller”

Rural bank– Award given to staff with the most amount of savings

collected (# and amount)– 75% based on ADB of new accounts opened– 25% based on # of new accounts opened– best officer gets P1,000 bonus

CONTRACTUAL SAVINGS

• Contractual Savings– Save for School, Save for Christmas, Save for

a Goal, Partner Savings Plan– Save a fixed amount every week/month– Withdrawal is restricted to end of periods– Interest is between savings rate and time

deposit rate– Penalties for early withdrawal or closure

Steps for Offering Savings

• Infrastructure Assessment

• Market Analysis

• Product Design

• Projections & Targets

• Product Testing & Launch

• Marketing

• Performance Monitoring & Cost Analysis

Questions?