MADISON, Wis. — World Council of Credit Unions has launched MatchSavings.org to give people an opportunity to combat global poverty by matching the savings deposits of the poor in the developing world.
Despite the critical need for personal savings, the poor in developing countries are more likely to have access to loans than to basic savings accounts. As tough economic times hit the developed world, foreign aid to developing countries is declining, fewer immigrants can afford to send funds home and employment opportunities are disappearing. As the cost of living continues to rise, the need for reliable savings becomes increasingly vital.
People living in poverty are desperate to find affordable and accessible alternatives to cover necessary expenses like basic home repair, their children's education, start-up expenses for a microbusiness and healthcare, according to WOCCU. A formal credit union savings account and a match incentive help working poor families develop regular savings habits, build assets and attain financial independence.
"Savings are about building wealth," said Brian Branch, WOCCU executive vice president and chief operating officer. "Families are able to and want to build their savings because that provides them with a way to finance their own growth."
MatchSavings.org builds on WOCCU's successful development programs worldwide. The first group of MatchSavings.org Savers are from rural Mexico, where WOCCU is helping credit unions deliver financial services by motorcycle, bus, boat and foot, directly to marginalized communities.
How MatchSavings.org Works
1. Savers open their first savings account at one of WOCCU's partner credit unions in a developing country-currently rural Mexico. Savers establish a six-month savings goal and commit to make regular monthly deposits.
2. Givers go to MatchSavings.org choose which types of savings accounts they want to match - housing, education, microbusiness or health - and make a donation.
3. At the end of the saving period, Savers receive the Givers' match on their savings principal, realize their savings goal and become members of a trusted CU that will help them reach their financial goals in the future.
As MatchSavings.org grows, WOCCU will expand the program to reach more people, communities and countries through its global network of CUs.
