Barclays Encourages Others To Follow Suit
Staff Writer | Monday November 2, 2015 15:28
The bank now calls on other financial institutions to follow suit and implement innovative savings models, enhanced by the latest technologies.
There are currently nearly 2 billion financially excluded adults around the world. Despite the introduction of mobile money and clever smartphone applications, 38 percent of all adults have no access to formal financial products. Working in partnership on a programme called Banking on Change with NGO’s CARE International and Plan UK, Barclays has set out to change this.
With a focus on supporting young people, the Banking on Change programme works in seven countries to give those in some of the world’s poorest communities the skills to save, as well as access to basic financial services.
The principle is simple; no-one is too poor to save. By forming community savings groups, individual members, most of whom earn less than US$2 day, save and lend together. Over 11,000 savings groups designed to meet the specific needs of young people have been created by the programme. They are provided with training to develop the skills and knowledge to save, manage their finances, and in most cases to set up a small business.
Barclays has developed bespoke products to suit the needs of a growing customer base in Africa, including group bank accounts such as Motshelo account, mobile banking products, and an overdraft facility. Barclays Bank entered into a partnership with Project Concern International to implement the Women Empowerment - Grassroots Building our Wealth (GROW) program. Barclays has invested P884, 444 from 2013-2015 to expand GROW into Kweneng (implemented by Hope Worldwide in Molepolole) and Chobe (implemented directly by PCI-Chobe staff in Kasane/Kazungula and Kachikau/Mabele) Districts.
Over the past two years 114 groups have formed with a total of 1915 members. Barclays supports 37 groups with 485 members. Combined the groups have saved P84, 211 and distributed 186 loans amounting to P 30,490. 25 individual and 42 income generating activities have been established in the two villages.
Project Concern International – GROW members are 1453 across the country. Savings mobilized P145, 728; loans disbursed P71, 447; 105 individual and 51 group enterprises established.
Using lessons learned from Banking on Change, Barclays, CARE International and Plan UK have established the Linking for Change Savings Charter to encourage other financial institutions’ involvement in this issue. The charter sets out international principles enabling other organisations to effectively link community groups to formal banking products and savings.
Banking on Change model demonstrates how grassroots saving and linkage to financial institutions can contribute towards closing the gap on the two billion unbanked people across the world. There are clear opportunities for banks and other formal financial institutions worldwide, with informal savers alone representing a pool of potential customers with the ability to save $116 billion each year