In 2011, Ghana’s largest and arguably most successful microfinance institution (MFI) – Sinapi Aba Trust (SAT) – resolved to transform its financial service operations into a government regulated Savings and Loans Company (S&L) – Sinapi Aba Savings and Loans (SASL), with controlling ownership remaining in the hands of SAT, a poverty-focused, non-government organization (NGO).

Just prior to the conversion in 2013, SAT served nearly 150,000 clients through 48 branches in all ten of Ghana’s regions. During this same period, SAT successfully balanced serving the poor with financial sustainability: portfolio at risk over 30 days was just 2.8%, average outstanding loan size was $803 (USD), and the vast majority of clients (85%) were women. With such strong performance, what drove Sinapi to undertake such a dramatic transformation?

To reach these objectives, Sinapi undertook major change initiatives across the entire organization. This case study compiles the experiences and lessons of Sinapi from this journey – documenting the transformation of an NGO-MFI into a commercial entity while maintaining the original mission of SAT: transforming the lives of economically disadvantaged people.

The case highlights key issues in base-of-the-pyramid savings mobilization, including:

1. Building trust through marketing and customer service;
2. Developing effective savings services and delivery channels;
3. Investing in human resources and preserving strong organizational culture;
4. Leveraging technology for regulatory compliance and new delivery channels;
5. Financing the transformation - conversion expenses and sufficient paid-up capital; and
6. Upholding a focus on the mission.

The case is particularly relevant for MFIs converting to regulated savings institutions as “late-comers” in the market, but is also pertinent for other financial institutions seeking to extend savings to under-served populations using alternative delivery channels.

Download the full-length, 66-page case study here:

Or download the abbreviated version here: