(IMF Working Paper, Prepared by Anupam Basu, Rodolphe Blavy, and Murat Yulek1, September 2004)
Traditional informal systems for the collection of savings and for lending have provided substantial insight for the operations of licensed MFIs in African countries. The use of informal traditional methodologies by licensed MFIs has been instrumental in mobilizing savings from lower-income households and giving them access to financial services that are similar to those provided by the formally regulated financial system. In particular, licensed MFIs have benefited from interacting with informal players in two ways:
• First, savings mobilization methods developed by informal savings collectors have been widely replicated. One example is how the susu collector function was expanded in Ghana by licensed MFIs with “Mobile Banking” services, with officers visiting rural markets on specific days (Box 2).
• Second, informal institutions have been integrated into the saving and lending operations of licensed MFIs. Informal savings collectors that place their deposits with the larger MFIs, may be considered a part of the saving mobilization effort of the latter; notably, they provide an additional layer in the structure of the microfinance system. This is the case for example in Ghana, with licensed MFIs working with Susu clubs (Box 2).
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International Monetary Fund
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The IMF is an international organization
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