Working Paper: NBER ID: w22633
Authors: Dean Karlan; Jake Kendall; Rebecca Mann; Rohini Pande; Tavneet Suri; Jonathan Zinman
Abstract: A growing body of rigorous research shows that financial services innovations can have important positive impacts on wellbeing, but also that many do not. We first describe the latest evidence on what works in financial inclusion. Second, we summarize research on key financial market failures and on products and innovations that address specific mechanisms underlying them. We conclude by highlighting open areas for future work.
Keywords: digital financial services; financial inclusion; microcredit; savings; insurance; payments
JEL Codes: G21; O12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| access to microcredit (O12) | average income and consumption (E21) |
| access to microcredit (O12) | business investments among certain entrepreneurs (L26) |
| access to short-term credit (G21) | farm output (Q12) |
| access to short-term credit (G21) | employment (J68) |
| elimination of account opening costs (G29) | savings and investment levels (E21) |
| commitment savings products (G51) | decision-making power for women (D70) |
| access to digital payment systems (E42) | consumption stability during income shocks (E21) |