Impact of Village Banking on Individual Members' Behaviour and Attitude Towards Savings: A Comparative Analysis of Wealth Creation, Bwafwano and Tiyeseko Women's Village Banking Groups in Zambia

Village banking has emerged as an important community-based financial mechanism for promoting savings, financial inclusion, and economic empowerment among low- and middle-income households, particularly in developing countries. While considerable literature has documented the contribution of village banking to access to credit and poverty reduction, limited empirical evidence exists regarding its influence on individual members' behavioural and attitudinal changes toward savings across groups with different socioeconomic characteristics. This study examined the impact of village banking on members' savings behaviour and attitudes toward savings through a comparative analysis of three village banking groups in Zambia: Wealth Creation Village Banking Group, Bwafwano Village Banking Group, and Tiyeseko Women's Village Banking Group.
The study employed a quantitative comparative research design involving a population of 210 members drawn from the three village banking groups. A purposive sampling strategy was used to select the groups, while simple random sampling was used to select 60 respondents (20 from each group). Data were collected using structured questionnaires and analysed using Chi-square tests to determine the association between village banking participation and savings behaviour and attitudes.
Findings indicate statistically significant differences in savings behaviour and attitudes among members across the three groups. Members of Wealth Creation Village Banking Group demonstrated the highest propensity toward regular savings, financial planning, and long-term investment orientation. Bwafwano members exhibited moderate savings discipline influenced by stable employment income, while Tiyeseko Women's Village Banking Group members showed substantial improvement in savings attitudes despite lower and irregular incomes. The study concludes that village banking positively influences savings behaviour irrespective of income levels, although the magnitude of impact varies according to socioeconomic characteristics. The paper recommends strengthening financial literacy programmes, tailoring savings products to member profiles, and supporting village banking structures as instruments for financial inclusion and household resilience.

village banking, savings behaviour, financial inclusion, attitude toward savings, microfinance, Zambia, financial literacy

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