Trust and Saving in Financial Institutions
33 Pages Posted: 18 Mar 2020 Last revised: 21 Sep 2022
Date Written: September 2022
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: Suggested Citation