Savings mobilization strategies

1. SAVINGS MOBILIZATION
STRATEGIES:
EXPERIENCES FROM THE FIELD
Training on Expansion Strategies
September 13, 2011
RBAP Bldg, Intramuros

2. SAVINGS MOBILIZATION
STRATEGIES
•ATM & Cash Cards
•Tiered Interest Rates
•Lotteries & Raffles
•Prizes & Awards
•Savings Boxes
•SMS Banking
•Incentives for Branches & Staff
•Contractual Savings

3. ATMs & Cash Cards
Card 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

4. 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

5. 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

6. 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

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

8. 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

9. STAFF INCENTIVES
Banco 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

10. 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

11. Steps for Offering Savings
•Infrastructure Assessment
•Market Analysis
•Product Design
•Projections & Targets
•Product Testing & Launch
•Marketing
•Performance Monitoring & Cost Analysis

12. Questions?