Saving clubs provide economic safety nets against crises and shocks by serving as mechanisms for families to save and borrow in the absence of formal financial services. During COVID-19 and after the hurricanes, saving clubs provided an immediate safety net for many families.
Savings clubs are the most successful in communities or sectors where informality and reliance on cash and predatory loans is high, that is where financial services are non-existent or tough to access.
Access to savings and credit serve as safety nets not during extreme events like pandemics or disasters, but during bad fishing seasons too where catches and income are low. Furthermore, savings clubs not only provide safety nets but can also serve as mechanisms to invest. Many savings clubs in Honduras have started to invest their savings in productive assets or entrepreneurial endeavors, making their funds grow faster.