SciELO - Scientific Electronic Library Online

vol.24 issue1Trust and perceptions of compliance, fairness and good faith in primary labour relationshipsA critical analysis of the foreign services reportable arrangement provision of the Tax Administration Act of South Africa author indexsubject indexarticles search
Home Pagealphabetic serial listing  

Services on Demand



Related links

  • On index processCited by Google
  • On index processSimilars in Google


South African Journal of Economic and Management Sciences

On-line version ISSN 2222-3436
Print version ISSN 1015-8812


LANDMAN, Marna  and  MTHOMBENI, Morris. Determining the potential of informal savings groups as a model for formal commitment saving devices. S. Afr. j. econ. manag. sci. [online]. 2021, vol.24, n.1, pp.1-12. ISSN 2222-3436.

BACKGROUND: Saving behaviour has attracted research attention over the past 20 years. Typically, individual and household saving rates among low-income groups are inadequate. Research suggests that informal savings groups are effective vehicles for encouraging saving among low-income individuals. Yet little is known about the drivers of positive saving behaviour among informal savings groups, which makes it difficult for formal providers to design interventions that promote higher levels of savingAIM: This study aimed to explore both the rational and non-rational drivers of saving behaviour among low-income members of informal savings groups, the attributes of informal savings groups that positively influence their collective saving behaviour, and to identify the valued features of savings groups that encourage the adoption of informal commitment saving devices (CSDsMETHODS: The study was informed by a literature review followed by field research in which semi-structured interviews were conducted with 10 savings groups and 10 individual members of savings groups. The participants' perspectives were analysed and compared within the context of behavioural economic theoryRESULTS: The study revealed seven characteristics of informal savings groups that potentially serve as interventions to explain non-rational saving behaviour. It also identified seven features valued by users of informal CSDs (including flexibility, restricted access to savings and no transaction fees) which could be salient to providers of formal CSDsCONCLUSION: On the basis of the findings, a behavioural design framework was proposed to inform the design features of formal CSDs that may ensure customer retention and improved saving outcomes

Keywords : saving behaviour; savings group; behavioural economics; commitment saving device; saving promotion intervention.

        · text in English     · English ( pdf )


Creative Commons License All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License