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SEED Program Case Study

The document summarizes the history and operations of Green Bank of the Philippines and discusses its microsavings programs. It outlines how Green Bank was founded in 1975 and expanded over time, merging with another bank in 2000. It then discusses Green Bank's microsavings programs, including its SEED Savings Program launched in 2002 that allowed clients to restrict withdrawals until reaching savings goals. The document considers how to evaluate the success and impact of these microsavings programs, debating whether to launch new programs directly or get client feedback first, and recommending using quantitative metrics like savings growth, client retention, and surveys to properly assess costs and social benefits.

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keerthana
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163 views10 pages

SEED Program Case Study

The document summarizes the history and operations of Green Bank of the Philippines and discusses its microsavings programs. It outlines how Green Bank was founded in 1975 and expanded over time, merging with another bank in 2000. It then discusses Green Bank's microsavings programs, including its SEED Savings Program launched in 2002 that allowed clients to restrict withdrawals until reaching savings goals. The document considers how to evaluate the success and impact of these microsavings programs, debating whether to launch new programs directly or get client feedback first, and recommending using quantitative metrics like savings growth, client retention, and surveys to properly assess costs and social benefits.

Uploaded by

keerthana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Evaluating Microsavings programs:

Green Bank of the Philippines


Presented by:
Keerthana S
PGDM No. 19026
Green Bank of Caraga

• 1975- Founded to serve local residents and businesses in Nasprit.


• The bank also supported Masagana 99, a government sponsored program
designed to provide credit to farmers.
• Discontinued within 10 years due to high rate of overdue payments and
tightening of Philippine monetary policy.
• 1995- First branch established near Bhutan city.
• 1998- First venture into Microfinance, when it launched a group micro-loan
program and a consumer loan program.
• 2000- Green bank merged with the Rural Bank of Algeria, making it the largest
bank in Caraga.
• 2002- Nationally recognized for its innovation and excellence, winning many
awards.
Microsavings

• Saving component- To save and earn interest upon that


• Informal sector provided mechanisms through which the poor could save.
• None of these informal methods were considered safe.
• In this response, Microfinance organisations expanded their services to
include savings.
• Microsavings programs were deposit services that allowed households and
the self-employed to put away small amounts of money to meet unexpected
expenses and plan for future investments.
• Microsavings programs were difficult to administer profitably, so banks charged
fees to cover costs.
• Group deposit collection to reduce interest rates to make microsavings programs
viable in poor communities.
• These programs did not address other cited barriers to savings.
• Commitment Savings product- Addressed the timing, psychological and social
factors.
• Encouraged saving by restricting the account holder’s ability to withdraw funds
prematurely.
The SEED Savings Program

• SEED- “Save, Earn, and Enjoy deposits.”


• The idea was to provide a product similar to informal savings devices to the
poor, which can be housed in a bank.
• They would allow clients to select a savings goal and restrict their funds to
withdraw funds until they reached that pre-determined goal or date.
• Further enhanced by emulating another practice- saving with Ganansiya
box.
• Clients can make small daily contributions and locking mechanism would
provide minimal deterrent from spending the savings.
Evaluate?- Dilemma
•Launch directly-
• Success rate previously – Special savings
deposits
• Discussed with focus groups
•Issues-
• Organisation may fall into risk
• Previous products failure or slower
growth – Lata child savings
• Focus groups may not give honest
answers and do not represent all the
clients.
Quantify Success
• Hard numbers
• Ask the focus groups how their savings have helped them
• Ask the clients why are they better off

Issues:
• May not get honest answers
• Is it because of the product itself?
Recommendations
• Savings product profitable?
• Positive social impact?
• Go with hard numbers as it will be used
to evaluate the costs and compare.
• Also quantifying the success helps in
setting a benchmark even for the
future and could properly evaluate the
growth performance.
• Select the clusters and survey on them
will help in evaluating.
• Client retention and growth numbers
will be an answer for positive impact.
THANK YOU

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