Past event

Brown Bag Seminar with Dr Philippe LeMay-Boucher, Heriot-Watt University Formal Finance for the Poor: Contrasting Evidence from Two Saving Devices

Abstract: We conduct a field experiment in Benin to assess the impacts of access to two formal saving devices on saving behavior, income, investments and a host of other metrics. Subgroups of our sample of around 2500 individuals are offered either access to a mobile money account or an account at a microfinance institution (MFI). These are the only two widely accessible formal options in our context. One and two years after opening these accounts, we find that using a mobile money account substantially improves savings, with additional positive effects on some downstream welfare dimensions (revenue and financial well-being). Comparatively, using a standard savings account from an MFI provides no significant effects on savings and income. Our results suggest that the flexibility provided by mobile money offers greater rewards.

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