Access to Formal Banking and Household Finances: Experimental Evidence from India
How to cite this publication:
Vincent Somville, Lore Vandewalle (2017). Access to Formal Banking and Household Finances: Experimental Evidence from India. Bergen: Chr. Michelsen Institute (CMI Working Paper WP 2017:1)
Access to formal banking is spreading across the world. Obtaining a bank account may transform how people manage their finances, and affect their savings and consumption. We report from a field experiment that randomly provides access to a bank account to a representative sample of villagers in rural India. The treated keep relatively important savings on their account, but reduce their other savings by a similar amount. Their household’s overall savings and expenditures do not change. We identify several barriers that may constraint total savings.
