Microsavings is a hot new idea 
in development economics.

It addresses a basic problem 
faced by many poor people.

Let's say you have a small amount 
of money, say, equal in value to $150

and you want to set up a savings account.

If you take this money to a large bank,
they'll turn you away

or maybe they'll even laugh at you.

The cost of processing the papers, 
setting up the account, and dealing with you

means it's not worth while for them 
to take care of your very small deposit.

The results is that a lot of this money
just sits around the homes of poor people

and it's vulnerable to fire, it's vulnerable to theft.

In fact, a lot of savings gets destroyed 
by some kind of catastrophe

or maybe it's taken by 
someone visiting the home.

And a lot of poor people, in fact, 
would actually be willing to pay money

to have some opportunity to save 
their money in a secure place.

The microsavings phenomenon
is evolving through a few different routes.

Nonprofits for instance are trying 
to set up or encourage opportunities

for very poor individuals to be able 
to save very small sums of money.

For instance, the Gate's Foundation 
has been very active in this area.

Another medium for microsavings has been
actually the cell phone or technology.

Using cell phones in 
some parts of the world,

it is possible to save 
and store your money

and transfer it to other people 
while using electronic technology.

Finally, banks in many countries 
face burdens and regulations.

To the extent these regulations
can be moved,

it will be cheaper 
to supply banking services

and banks will be more 
interested in serving the poor.

That too will make microsavings easier.

Microsavings is, in general, considered 
a very promising idea for the future.

If you'd like to do 
more reading in the area,

here is one good paper on the topic.