Exploring the possibilities of integrating the savings of women in poor urban communities to formal finance systems to enhance housing opportunities: A case of South Africa

摘要

Purpose – The purpose of this research is to explore the possibility of integrating women-centred savings schemes into formal finance systems in order to help such schemes to leverage finance for housing purposes. Design/methodology/approach – The research adopts a case study approach that uses mainly semi-structured interviews. The case studies involve two savings schemes with their respective supporting organisations and five commercial banks in South Africa. Findings – The case studies show that, if savings systems are flexible and suitable to their needs, women are capable of saving and repaying housing loans. The results also suggest that the accumulated group savings and the savings schemes themselves act as good collateral. However, despite showing interest in involvement in the low-income sector, banks do not have a financially viable and workable business model to exploit this potential market. Research limitations/implications – Integrated community housing is essential. Future research is required to determine how good repayment rates could be achieved while maintaining risks at acceptable levels. Practical implications – For practical purposes, collaboration with intermediary organisations working with women-centred savings schemes would be a beneficial starting point in linking the savings schemes with formal finance systems. Originality/value – The paper provides valuable reference material for understanding the gap that exists between what banks currently offer and what poor households require in meeting their housing needs. It may also be useful to researchers and practitioners as a basis for exploring innovative finance models for banks.