Promoting Inclusive Markets and Financial Systems
The MasterCard Foundation works with visionary organizations to provide greater access to education, skills training and financial services for people living in poverty, primarily in Africa. As one of the largest private foundations its work is guided by its mission to advance learning and promote financial inclusion to create an inclusive and equitable world. Based in Toronto, Canada, its independence was established by Mastercard when the Foundation was created in 2006. For more information and to sign up for the Foundation’s newsletter, please visit www.mastercardfdn.org. Follow the Foundation at @MastercardFdn on Twitter.
Focus Note 1: Outcompeting the Lockbox – Linking Savings Groups to the Formal Financial Sector
For market players with the foresight to take advantage of deposit linkage opportunities, a desirable business case awaits (see second Focus Note in this series). But these opportunities cannot be pursued half-heartedly or as an afterthought—members won’t rush to open formal savings accounts until banks and mobile money operators prove that their value and added cost outweighs the many conveniences of existing SG arrangements. This Focus Note details what those conveniences are and argues that banks and mobile network operators can provide real value to the financial lives of SG members (longer-term, diverse savings options) by overcoming some SG shortcomings.