Trust and Saving in Financial Institutions

33 Pages Posted: 18 Mar 2020 Last revised: 21 Sep 2022

See all articles by Sebastian Galiani

Sebastian Galiani

University of Maryland - Department of Economics

Paul J. Gertler

University of California, Berkeley - Haas School of Business; National Bureau of Economic Research (NBER)

Camila Navajas Ahumada

University of California, San Diego (UCSD) - UC San Diego

Multiple version iconThere are 2 versions of this paper

Date Written: September 2022

Abstract

We randomly assigned beneficiaries of a conditional cash transfer program in Peru to attend a 3 hour training session designed to build their trust in financial institutions. We find that the intervention: (a) increased trust in banks, but had no effect on fi- nancial literacy, and (b) increased savings over a ten month period. The increase in savings represents a 1.4 percentage point increase in the savings rate out of the cash transfer deposits, and a 0.4 percentage point increase in the savings rate out of house- hold income.

Keywords: Trust, savings and poverty

JEL Classification: G20, D14, I30

Suggested Citation

Galiani, Sebastian and Gertler, Paul J. and Navajas Ahumada, Camila, Trust and Saving in Financial Institutions (September 2022). Available at SSRN: https://ssrn.com/abstract=3542953 or http://dx.doi.org/10.2139/ssrn.3542953

Sebastian Galiani (Contact Author)

University of Maryland - Department of Economics ( email )

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United States

Paul J. Gertler

University of California, Berkeley - Haas School of Business ( email )

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National Bureau of Economic Research (NBER)

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Camila Navajas Ahumada

University of California, San Diego (UCSD) - UC San Diego ( email )

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La Jolla, CA 92093-0519
United States

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