Safesave (A): Providing Financial Services to Slum Dwellers

This case study profiles SafeSave, a doorstep savings and credit service started by Stuart Rutherford in Bangladesh.

SafeSave operates on the presumption that poor people can and do save, but lack the opportunity to store savings in a safe, accessible manner. For poor families, savings stored at home is liquid, but risky, while money saved with a savings group or lent to others is safe, but relatively illiquid. SafeSave attempts to solve this dilemma of being forced to choose either risk or illiquidity, by providing a safe, convenient, door-step banking service to the poor. Key characteristics of SafeSave include:

• Service does not involve groups or assets as guarantees;
• Clients receive savings, loans, and loan-related services at their doorstep, daily;
• Loans are voluntary and their amount is based on the clients request;
• Service does not involve minimum amount or repayment schedule for the principal;
• Maximum loan amount depends on the borrowers savings deposit level and/or the amount pegged by project implementers.

The basic principle of SafeSave is that loan amounts and terms should be client-centric and based on their needs.