Scaling Up Microsavings

Abstract:     
Since the bulk of MFIs remain relatively small scale in terms of deposit mobilization, this prompts us to look into the growth strategies pursued by MFIs, large and small. Do the larger deposit-taking MFIs exhibit a more intensive utilization of their distribution network in terms of savers per branch (giving rise to what we term intensive growth), or do they simply have many more branches (which we term extensive or distribution-driven growth)? In this respect, we compare the behavior of MFIs against commercial banks, to see whether their growth dynamics are different. We also compare the relationship between intensity of use of branches and the total number of customers served by the institution between the savings and lending sides..

Number of Pages in PDF File: 6

Keywords: Microfinance, Microsavings, Expansion Patterns, Intensive Growth, Extensive Growth

Accepted Paper Series