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.
In this paper, the author attempts to gain a better understanding of savings group operations and benefits, the motivations of the participants and their intended use of the lump sum proceeds. In order to gather information for this paper, the author conducted either phone or face to face interviews with Maria Alba, her brother Luis Alba, her first cousin Ernesto Sanchez and her aunt Veronica Chavez.
Maria is 33, unmarried and has one child. She owns her own home. She is employed as a nanny, and also has a house cleaning business. She has both a personal checking and savings account. Luis is 30, unmarried and has no children. He rents a room from Maria. He owns a deli and has both business banking accounts as well a personal checking and savings account. Ernesto is 33, married and has two children. He rents, but is saving for a home. He is employed as a chef in a restaurant. He has both a personal checking and savings account. Veronica is 56, married and has seven children some of whom are adults. She owns a home. She also owns a restaurant. She has business banking accounts along with a personal checking and savings account.