00:01
So, in this question we are asked to highlight the conditions that must exist for a microfinance institution to consider mobilizing voluntary savings.
00:11
So, microfinance institutions considering the mobilization of voluntary savings must take into account several critical conditions to ensure ethical, sustainable and responsible management, responsible management of funds.
00:36
So, here are the key conditions that should exist.
00:39
One, client confidence and trust.
00:49
So, client should have confidence in the microfinance institutions, financial stability, transparency and integrity.
00:55
Trust is essential to encourage clients to save their funds with the institution.
01:01
Now the second important point is sound governance and regulation.
01:09
So, these institutions must operate under a clear legal and regulatory framework that govern the mobilization and management of voluntary savings.
01:20
Third point to keep in mind is financial literacy and education...