Financial Education and Savings Behavior: Evidence from a Randomized Experiment among Low-Income Clients of Branchless Banking in India
Financial Education and Savings Behavior: Evidence from a Randomized Experiment among Low-Income Clients of Branchless Banking in India
7 July, 2020 •Similar Articles
The Long-Term Effects of Temporary Incentives to Save: Evidence from a Prize-Linked Savings Field Experiment
Are savings accounts experience goods, where consumers learn the value of saving in formal financial institutions only after opening and using an a...
Group versus individual liability: A field experiment in the Philippines
Group liability is often portrayed as the key innovation that led to the explosion of the microcredit movement, which grew with the Grameen Bank in...
Incentives for Loan Repayments: Evidence from a Randomized Field Study
This field experiment tests an innovative approach for helping automobile loan borrowers make their loan payments on time. Borrowers were randomly ...
Financial literacy programs are popular, despite limited evidence that they lead to significant changes in savings behavior. We experimentally test the impact of financial literacy training on clients of a branchless banking program that offers doorstep access to banking to low-income households. The intervention had significant impacts: total savings in the treatment group increased by 49% ($39) within a period of 1 year. The increase in savings is due in part to decreases in expenditures on temptation goods. These results suggest that financial education interventions can be successful in changing savings outcomes, although results may be very context specific.