Evaluating Microsavings programs:

Green Bank of the Philippines

Presented by:
Keerthana S
PGDM No. 19026
Green Bank of Caraga

• 1975- Founded to serve local residents and businesses in Nasprit.

• The bank also supported Masagana 99, a government sponsored program
designed to provide credit to farmers.
• Discontinued within 10 years due to high rate of overdue payments and
tightening of Philippine monetary policy.
• 1995- First branch established near Bhutan city.
• 1998- First venture into Microfinance, when it launched a group micro-loan
program and a consumer loan program.
• 2000- Green bank merged with the Rural Bank of Algeria, making it the largest
bank in Caraga.
• 2002- Nationally recognized for its innovation and excellence, winning many
awards.
Microsavings

• Saving component- To save and earn interest upon that

• Informal sector provided mechanisms through which the poor could save.
• None of these informal methods were considered safe.
• In this response, Microfinance organisations expanded their services to
include savings.
• Microsavings programs were deposit services that allowed households and
the self-employed to put away small amounts of money to meet unexpected
expenses and plan for future investments.
• Microsavings programs were difficult to administer profitably, so banks charged
fees to cover costs.
• Group deposit collection to reduce interest rates to make microsavings programs
viable in poor communities.
• These programs did not address other cited barriers to savings.
• Commitment Savings product- Addressed the timing, psychological and social
factors.
• Encouraged saving by restricting the account holder’s ability to withdraw funds
prematurely.
The SEED Savings Program

• SEED- “Save, Earn, and Enjoy deposits.”

• The idea was to provide a product similar to informal savings devices to the
poor, which can be housed in a bank.
• They would allow clients to select a savings goal and restrict their funds to
withdraw funds until they reached that pre-determined goal or date.
• Further enhanced by emulating another practice- saving with Ganansiya
box.
• Clients can make small daily contributions and locking mechanism would
provide minimal deterrent from spending the savings.
Evaluate?- Dilemma
•Launch directly-
• Success rate previously – Special savings
deposits
• Discussed with focus groups
•Issues-
• Organisation may fall into risk
• Previous products failure or slower
growth – Lata child savings
• Focus groups may not give honest
answers and do not represent all the
clients.
Quantify Success
• Hard numbers
• Ask the focus groups how their savings have helped them
• Ask the clients why are they better off

Issues:
• May not get honest answers
• Is it because of the product itself?
Recommendations
• Savings product profitable?
• Positive social impact?
• Go with hard numbers as it will be used
to evaluate the costs and compare.
• Also quantifying the success helps in
setting a benchmark even for the
future and could properly evaluate the
growth performance.
• Select the clusters and survey on them
will help in evaluating.
• Client retention and growth numbers
will be an answer for positive impact.
THANK YOU