Scholars, policymakers, and practitioners of microfinance are increasingly turning their focus toward devising and offering effective and accessible savings services for the poor. Not only have experts argued that demand for savings services greatly exceeds that of microcredit, but many also contend that savings-led programs and products, with a focus on building assets, may be more effective than credit in providing a pathway out of poverty.

One creative approach to offering asset-building savings services is to directly match the savings of low-income, economically marginalized individuals. Experiments with products and policies involving "matched savings" have blossomed in recent years as researchers have cited their positive social, economic, and even behavioral benefits to the poor. While most of the discussion and experiments involving matched savings, also known as Individual Development Accounts, has occurred in developed countries the potential of - and indeed the need for - such programs is likely as great if not greater in developing countries.

This Global Assets Project Issue Brief introduces the concept of matched savings in the context of its potential for reducing global poverty and promoting financial inclusion. It highlights the design and experience of World Council of Credit Unions' (WOCCU) newly launched savings program in Mexico, MatchSavings.org, while exploring opportunities and challenges for this and related matched savings programs in developing countries.

To access the Issue Brief, click on the link at the right.