Danny Alexander and his IDEO.org team kick off another financial services project, working with MEDA and Ugafode to design new, innovative savings products for rural savers in Uganda.

Continuing IDEO.org’s recent exploration into the world of financial services, Robin, Eric, and I are excited to team up with the Mennonite Economic Development Associates (MEDA) and Ugafode to bring new formal financial services to the Ugandan market. Ugafode, initially a small scale micro finance institution, has just recently become a certified deposit-taking institution, meaning their clients can now keep a formal savings account with the company. The use of formal financial services such as a savings account is not only a more secure method to save but also protects families from economic volatility and can be a fundamental tool for improving productive capacity. In response to this new certification, Ugafode brought in MEDA and the IDEO.org team to design savings products that meet the needs of their customers. 

In designing these new savings products, Ugafode is looking to expand the reach of its existing branches to more rural and female customers, and is excited to consider more branchless banking options. Keeping this shift in client focus in mind, we approached the design challenge with one overarching question: How might we develop formal savings products that enable rural customers to save in a more secure, accessible way? 

During our two-week field visit we traveled with MEDA’s project manager and Ugafode staff members to visit Ugafode’s rural clients in three different regions in Uganda - Kampala, Mbara, and Masindi - with the aim of understand the existing savings structures of Uganda and how rural clients perceive savings at a formal versus informal level.  

Right from the start, Robin, Eric, and I came to an understanding that Ugandans had a wide variety of savings methods, including some of the most sophisticated informal savings structures we’ve seen at IDEO.org. Almost everyone - even in extremely rural regions - was somehow involved in a savings group. From access to emergency funds to school fee loans to financial education, these groups showed a wide range of benefits, and have tremendous impact on the financial lives of the rural poor. 

Understanding these informal systems has no doubt provided us with an inspirational backboard to begin brainstorming new solutions. Stay posted as our team - Robin Bigio, IDEO.org Senior Designer, Eric Lopez, IDEO Business Designer contracted for the project, and myself, Danny Alexander - share more insights and observations from client visits in our next update!