Building Savings Gateways for the Poor

By Chris Page

Three former Foundation staff members, James Hokans (Urban Poverty, Nairobi, 1987-1992), Chris Page (Rural Poverty/Economic Development, New York, 1992-1999) and Jennefer Sebstad (Rural Community Development/Women's Employment, Nairobi, 1984-1988) have joined forces on an innovative project to improve access to financial services for the poor. The Bill & Melinda Gates Foundation recently announced a three-year $9.5 million grant to the nonprofit Rockefeller Philanthropy Advisors (RPA) in New York, where Chris is Senior Vice President. The grant supports Gateway Financial Innovations for Savings (GAFIS), a program that will work with financial institutions in five countries to create savings accounts that are affordable for poor families and profitable for banks over the long term. RPA has awarded the contract for field-based management of the program to Bankable Frontier Associates (BFA) in Boston where Jim is a Director. BFA is a niche consulting company with a successful track record in promoting financial inclusion for poor people, especially in the fields of technology, housing finance and social investment in emerging markets. Jennefer, currently based in Boulder, CO after stints in Ethiopia, Kenya, and India, is a development consultant on income, employment and asset building strategies. She has been appointed by RPA to serve with Chris on the GAFIS program advisory committee. GAFIS will partner with large banks in Latin America, Asia, and Africa to develop or expand savings products and approaches, including those using mobile phone technologies. Among other things, GAFIS will explore savings opportunities for the estimated one hundred and fifty million people who make regular bank visits to collect government welfare payments and remittances. The program also will support market, product, and business research to help develop appropriate distribution channels for savings products and encourage families to keep a diary of their daily financial lives and needs. The resulting data is expected to inform the development and roll-out of new, large-scale, high-quality savings products by institutions participating in the program. In addition to breaking through cultural and institutional barriers preventing the poor from building assets, all three Ford alums believe the outcomes will help to develop new banking models that can serve poor communities worldwide. Interested colleagues can monitor the progress at www.gatewaytosavings.org and learn more about RPA's work at www.rockpa.org.