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World Leaders Gather for First-Ever Savings ForumNovember 23, 2010 Last week the first-ever Global Savings Forum took place in Seattle. The forum, a project of the Gates Foundation Financial Services for the Poor initiative, drew global leaders in banking, government, mobile communications and international development work, many of them fresh from the G-20 Summit, which concluded in Korea a few days earlier. Melissa Gates, wife and partner of billionaire philanthropist Bill Gates, marked the ocassion by announcing a $500 million pledge from the Foundation to distributed over the next five years to expand savings programs globally. Savings accounts are in pretty high demand these days, especially in developing countries. The Gates Foundation, in fact, cites research and real life examples indicating that when savings and loan products are offered side by side, people choose savings over loans at rates of up to 12 to one, and to great benefit. Yet, fewer than 10% of the world's poor have any access to formal financial tools, like savings accounts.
The Gates Foundation's Financial Services for the Poor initiative involves grants and other assistance with a wide range of public and private partners/projects that harness technology and innovation to bring affordable and safe financial services options to the doorsteps of poor people in the developing world. Since 2006, the initiative has committed hundreds of millions of dollars to programs focused on increasing access to financial services among the world's poorest. More than a dozen different programs and groups are receiving funds under the latest round of grants. Recipients include:
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 53% of adults, worldwide, are unbanked -Financial Access Initiative |
"Savings doesn't just help people mitigate the risks posed by a medical emergency or a bad crop," said Gates. wjp also challenged world leaders to do more to help the unbanked. "It also gives them the ability to marshal their resources to build something better for themselves and their children. It allows them to fund their own businesses, to look ahead with confidence. Savings helps families to take a giant leap from reacting to events to planning for a healthier, happier future."