Community Driven Development

Savings and Internal Lending Communities (SILC)

Guy Vanmeenen

Senior Technical Advisor Microfinance – Africa

Guy.vanmeenen@crs.org

SILC: Banking in the bush!

What is a SILC Group?

• Informal groups of 20• Self-selected• Regular meetings• Committee• Group saves• Loans• Social/emergency fund• Savings and interest divided yearly• No external credit • Independent• Self-regulated• Rural

What does a SILC need?

5

Savings

Loan fund

Social Fund

Funerals16%

Medical Bills26%

School fees and materials

26%

Household essentials11%

Ceremonies21%

From subsidy to market-led development:

the Private Service Provider Model

Sustainability = predominant concern in development.

Savings groups = no exception.

CRS’s answer and market niche = enacting one of most sustainable delivery models on savings-group landscape today. Local, affordable and accessible.

Sustainability = predominant concern in development.

Savings groups = no exception.

CRS’s answer and market niche = enacting one of most sustainable delivery models on savings-group landscape today. Local, affordable and accessible.

The Private Service Provider (PSP Model) Agents paid only by members. End-goal = direct foreign aid plays no

role in ongoing service delivery. Market demand & profit motive provide

drive to sustain & create more groups. Quality of service escalates under market

forces. PSPs to replace Field Agents (FAs),

salaried under external aid funding. Offer a path to long-term sustainability.

The Private Service Provider (PSP Model) Agents paid only by members. End-goal = direct foreign aid plays no

role in ongoing service delivery. Market demand & profit motive provide

drive to sustain & create more groups. Quality of service escalates under market

forces. PSPs to replace Field Agents (FAs),

salaried under external aid funding. Offer a path to long-term sustainability.

Great program…but how do we keep it going?....

Certification Timeline

FA PSP

InductionTrainin

g

Networks

Apprentices

(free)

(fee-for-service)

Certification Exam

Refresher 1

Refresher 2

Apprentice Exams

Probation

Certification Process

FA PSP

Training

Supervision

Examination

DCFFGDs

Oral exam

Networks

Apprentices

(free)

(fee-for-service)

Sustainability

• Perpetual return on investment (3 levels):– Group sustainability– Private Service Provider Model (PSP) – new

group creation through fee-for-service structure– PSP Network – Certification of apprentices into

PSPs

Research Agenda and results

• Group quality and financial performance

• Impact on group members and their households

• Poverty outreach

• Member satisfaction with agent services

• Agent satisfaction with their work and remuneration

• Sustainability of services to groups

Research Briefs available on:

http://www.crsprogramquality.org/microfinance/

• Short Video