What drives profits in Savings Groups?

Dear Colleagues,

Savings groups is one of the World’s largest banking systems. Around 20 members group together and save from USD 0,1 to maybe USD 3 weekly. The money is lent out with interest to some of the members. Just like a bank. It is a fascinating model that really works. Members get access to basic financial services. Like in regular banking some groups do better than others. We use data mining techniques on a database containing more than 200 thousand groups. The question we answer is: “What drives profits in Savings Groups?” If interested in banking at the very bottom of the pyramid then you should read the paper. It is open access. You find it here: https://lnkd.in/dzjC6xFY.

Best wishes,
Roy Mersland
Professor/Director PhD program
Director Center for Research on Social Enterprises and Microfinance (CERSEM)
School of Business and Law
University of Agder

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