Proposal of a Theoretical Model for Measuring the Social Impact of Community Savings

Abstract

This article develops and conceptually clarifies a theoretical framework for measuring and managing the social impact of Self-Financed Communities (SFCs), with particular emphasis on usefulness and outcomes related to well-being, resilience, and opportunity in line with the Financial Inclusion 2.0 agenda. A deductive-descriptive research design was adopted, drawing on three primary inputs: a synthesis of academic and institutional literature on financial inclusion, financial health, and savings groups; a mapping of impact pathways and core metric sets from IRIS+; and alignment with CGAP’s impact narrative centered on resilience and opportunity, complemented by evidence from the Global Findex 2021 and recent findings from the 60 Decibels Microfinance Index. The proposed model identifies six dimensions of change—economic, health, psychological, social-community, gender equity, and education—and introduces a structured set of indicators aligned with IRIS+ metrics and the Sustainable Development Goals (SDGs). It further presents an impact value chain tailored to SFCs, outlines a validation protocol using case study approaches, and proposes a core indicator set for operational application. Existing evidence suggests that financial service outcomes are heterogeneous and influenced by product design, contextual factors, and client characteristics, while the integration of financial training, complementary services, and group-based lending mechanisms enhances reported outcomes. The study offers operational recommendations for SFC promoters, including financial and digital literacy initiatives, advisory support, and client protection protocols, and proposes alignment with national financial education and inclusion strategies. It also specifies hypotheses and methodological approaches for future validation through longitudinal and experimental research designs. Evidence from CAF groups in Europe indicates comparable improvements in trust and leadership development.