Bank-Branch Supply, Financial Inclusion, and Wealth Accumulation

Célérier, Claire; Matray, Adrien

doi:10.1093/rfs/hhz046

Cited by 182 publications

(79 citation statements)

References 57 publications

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“…This corroborates with the study reported in [24]. Célerier and Matray in [26] did a study on the effects of FI on wealth accumulation in the context of USA. The authors studied the USA interstate branching deregulation policy between 1994 and 2005 and established that expansion of the bank branches across the states helped to increase access to funds the low-income earners, hence it increase the lowincome household FI.…”

Section: Related Worksupporting

confidence: 92%

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Experimental Application of Machine Learning on Financial Inclusion Data for Governance in Eswatini

Akinnuwesi¹,

Fashoto²,

Metfula³

et al. 2020

Lecture Notes in Computer Science

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An objectives of good governance is to increase capital base of small scale businesses (SSB) in order to encourage more investments and hence increase employment rate. Embracing good financial inclusion (FI) schemes in a country helps to ensure that entrepreneurs of SSB have access to financial services and hence meet their needs. In this paper we studied FI scheme in Kingdom of Eswatini with the view to establish the extent to which SSB have access to funds in running their businesses such that they could satisfy the target population and meet their desired goals. We got FI dataset for Eswatini for 2018 from Finscope database. Finscope 2018 dataset contains 1385 attributes with 2928 records. This study extracted attributes based on payment channel, registered/unregistered business, usage of commercial banks/insurance/mobile money and source of income for households from the Finscope database. We identified lot of missing data and hence replaced them using Mode method of preprocessing module in WEKA. We split the datasets and carried out cross validation on it. Training data is 80% of the datasets and 20% was used for testing. We carefully classified FI for selected parameters for Hhohho, Manzini, Shiselweni and Lubombo regions of Eswatini using Logistic regression with 80% for training and 10 fold cross-validation. The best 10 fold cross-validation recall rate for Manzini region using support vector machine (SVM) is 69.4% and 63.4% using logistic regression. These results show that veracity of FI dataset is weak and this is due to large number of missing data.

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Section: Related Worksupporting

confidence: 92%

“…Presently in Africa there is so much interest to promote financial inclusion based on the commitment of so many countries to financial inclusion action plan to reduce poverty and grow their economy [26,30]. But Africa as a continent is lagging behind other continents in financial inclusion because inclusive development is left out [5,31].…”

Section: Resultsmentioning

confidence: 99%

Experimental Application of Machine Learning on Financial Inclusion Data for Governance in Eswatini

Akinnuwesi¹,

Fashoto²,

Metfula³

et al. 2020

Lecture Notes in Computer Science

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“…Some hypothesize that this is due to a lack of access to low-cost, convenient savings devices at formal financial institutions (Karlan, Ratan and Zinman, 2014). When households do have access to financial institutions, there are a number of well-documented causal impacts including increased entrepreneurial investment, wealth accumulation, and ability to cope with shocks (Bruhn and Love, 2014;Stein and Yannelis, 2019;Célérier and Matray, forthcoming).…”

Section: Introductionmentioning

confidence: 99%

How Debit Cards Enable the Poor to Save More

Bachas¹,

Gertler²,

Higgins³

et al. 2017

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We study an at-scale natural experiment in which debit cards are given to cash transfer recipients who already have a bank account. Using administrative account data and household surveys, we find that beneficiaries accumulate a savings stock equal to 2 percent of annual income after two years with the card. The increase in formal savings represents an increase in overall savings, financed by a reduction in current consumption. There are two mechanisms: first, debit cards reduce transaction costs of accessing money; second, they reduce monitoring costs, leading beneficiaries to check their account balances frequently and build trust in the bank.

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“…Therefore, if search costs are a primary reason that many workers are not already saving for retirement, the introduction of an automaticenrollment retirement savings plan is likely to result in high participation rates at the default saving rate and significant incremental retirement savings. Evidence in Célerier and Matray (2019) that increased bank branch supply leads to greater wealth and net-worth accumulation in low-income households implies that supply-side solutions to low savings rates, such as OregonSaves, may lead to improved welfare.…”

Section: Introductionmentioning

confidence: 99%

Auto-Enrollment Retirement Plans for the People: Choices and Outcomes in OregonSaves

Chalmers¹,

Mitchell

Reuter

et al. 2020

SSRN Journal

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Insuring retirement security is an important challenge for our aging society, and many policymakers are seeking ways to help individuals save more for retirement. The state of Oregon recently launched an autoenrollment retirement savings program for private sector workers who lack access to workplace retirement plans; many of these workers are lower-paid employees working at smaller firms. Our paper investigates early results from the OregonSaves program using data through June 2019. We find that OregonSaves is serving firms across many industries, including food services, health care, retail trade, and agriculture. In June 2019, approximately 24,000 contributing participants deposited an average of $110 per month, or about 5% of their pay, which is the default savings rate. To date, over 40,000 individuals have accumulated combined assets over $22.7 million. We also find that OregonSaves has provided access to workplace retirement accounts for employees of small to mid-sized firms (average firm size 36 employees), with participating employees' earning an average of $2,182 per month.

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Bank-Branch Supply, Financial Inclusion, and Wealth Accumulation

Cited by 182 publications

References 57 publications

Experimental Application of Machine Learning on Financial Inclusion Data for Governance in Eswatini

Experimental Application of Machine Learning on Financial Inclusion Data for Governance in Eswatini

How Debit Cards Enable the Poor to Save More

Auto-Enrollment Retirement Plans for the People: Choices and Outcomes in OregonSaves

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