SAVE LA is a unique 24-month accelerated savings account program that leverages human social networks commonly found in informal savings groups, along with high accelerated interest rates to 1.) Incentivize consumers to accumulate savings for the long-term 2.) Modify savings behavior and 3.) Increase consumer awareness in the sphere of financial services and products. Peer-based financial products have proved a successful tool to leverage social collateral as a safeguard against early or trivial withdrawals from long-term savings plans. Its design borrows concepts from micro-enterprise that suggest successful outcomes and asset accumulation in settings where a borrower’s history of payments affects not only the individual but the group to which he/she is assigned. SAVE LA is projected to open 250 accounts over the span of two years and generate $442,740 in cumulative savings for the program.
At this moment SAVE LA is in the development stages. Please stay tuned!