msc-project

MSC Project

Over the last decade, there has been a proliferation of initiatives to expand access to formal financial services in underserved markets through savings groups. Initiatives to link VSLAs to Financial Service Providers (FSPs) have resulted in improved access to finance for VSLA members; however, several challenges remain before these efforts can reach scale Low supply of financial services such as lack of business credit which is emphasized as the primary obstacle, with informal structures insufficient to meet the needs of members of these VSLAs, limited delivery channels, formal financial services are limited, primarily due to physical inaccessibility to the rural VSLAs which results in high accessibility costs for the VSLAs and individuals, lack of financial knowledge, a lack of understanding by VSLAs on how to utilize formal services, and how to make informed decisions regarding these services.