Meet People Where They Are: Building Formal Credit Using Informal Financial Traditions

Tom Akana

No 19-3, Consumer Finance Institute discussion papers from Federal Reserve Bank of Philadelphia

Abstract: The Consumer Finance Institute hosted a workshop in February 2019 featuring Jos Quionez, chief executive officer, and Elena Fairley, programs director, of Mission Asset Fund (MAF) to discuss MAF?s approach to helping its clients improve access to mainstream financial markets. MAF?s signature program, Lending Circles, adapts a traditional community-based financial tool known as a rotating savings and credit association (ROSCA) to help establish or expand credit reports for participants who may not be able to do so through traditional means. Lending Circles have served more than 10,000 clients since 2007 and have expanded well beyond MAF?s core constituency in the Mission District of San Francisco. Quionez and Fairley discussed MAF?s approach to working with the communities it serves and shared the key successes and challenges that MAF has encountered. This paper provides an overview of the information shared in the workshop and additional research connecting Lending Circles to previous work on ROSCAs.

Keywords: rotating savings and credit association (ROSCA); financial inclusion; credit invisibles; underserved; unbanked (search for similar items in EconPapers)
JEL-codes: D14 D71 D91 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2019-08-15
New Economics Papers: this item is included in nep-fle, nep-iue and nep-mfd
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https://www.philadelphiafed.org/-/media/frbp/asset ... n-papers/dp20-01.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedpdp:19-03

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DOI: 10.21799/frbp.dp.2019.03

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