An Analysis of Agent Earnings in Fee-for-service Savings Groups

This paper shares findings from a large-scale randomized control trial of households that participated in Savings and Internal Lending Community groups in Kenya, Tanzania and Uganda. It looks at patterns in group payments. It also compares Private Service Providers’ incomes and field agents’ stipends. The finding indicates that fee-for-service savings group agents show high variability in their earnings, with most earning less than the stipends paid under the traditional Field Agent model.

About SILC Innovations

Savings and Internal Lending Communities (SILC) is a model developed by Catholic Relief Services for user-owned, self-managed, savings and credit groups. A SILC typically comprises 15-30 self-selecting members, and offers a frequent, convenient, and safe opportunity to save. SILC helps members build useful lump sums that become available at a pre-determined time and allows them to access small loans or emergency grants for investment and consumption.

SILC Innovations is a pilot project within CRS’ broader SILC program, funded by the Bill & Melinda Gates Foundation from 2008-2012, which aims to establish local entrepreneurial capacity for sustaining the spread of the savings-group model beyond the funding period. In the project design, the Field Agents (FA) responsible for forming and supporting SILC groups are recruited and paid by the project for up to one year. The FAs then undergo an examination process to become certified as Private Service Providers (PSP), who offer their SILC services to communities on a long-term, fee-for-service basis, with no further project funding. The project currently serves over 350,000 savings group members, mostly rural villagers, across the three pilot countries of Kenya, Tanzania, and Uganda.