The challenges of saving in Chile

Saving is a fundamental economic variable that is directly related to the progress and well-being of the population. Although in recent decades Chile stood out in the region for the levels of national savings – that is, household savings added to that of the Government and companies – this indicator has been falling quarter by quarter in a sustained manner.
Indeed, according to data from the Central Bank, between 1988 and 2012 the national savings rate averaged 23% of GDP. However, in the third quarter of 2021, this indicator stood at only 18.1% of GDP. This data should put us on alert as a society and challenge us to recover the levels of national savings in the coming years.
How do we do it? A column published by the economist Enrique Marshall a few months ago pointed out that the offer of mass savings services of people and households is not wide or attractive, the committed suppliers are reduced and there is little competition. This is a wake-up call for financial institutions to move forward in creating attractive products that encourage people to increase their savings levels, especially among the youngest.
Likewise, it is necessary that we work even more in financial education, which allows women and men to understand the importance of maintaining saving habits, within the scope of their possibilities, to face unforeseen events or future investments.
I am convinced that from Coopeuch we have a lot to contribute in this regard. Our credit union has the trust of more than 1 million members and we are the second financial institution in Chile with more savings accounts, exceeding 961 thousand accounts and with balances of more than $ 845 billion at the end of 2021.
These numbers commit us to work with greater enthusiasm from our cooperative business model in the promotion of a habit as positive as saving, because we are part of a great project, whose main objective is to bring concrete benefits to thousands of families of Chileans, throughout the entire national territory.

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Original source in Spanish