Trust and Saving in Financial Institutions by the Poor

34 Pages Posted: 2 Mar 2020 Last revised: 7 Oct 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: February 2020

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 financial 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 household income.

Suggested Citation

Galiani, Sebastian and Gertler, Paul J. and Navajas Ahumada, Camila, Trust and Saving in Financial Institutions by the Poor (February 2020). NBER Working Paper No. w26809, Available at SSRN: https://ssrn.com/abstract=3547157

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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