Banking the Unbanked: What Do 255 Million New Bank Accounts Reveal about Financial Access?

Agarwal, Sumit; Alok, Shashwat; Ghosh, Pulak; Ghosh, Saurabh; Piskorski, Tomasz; Seru, Amit

doi:10.2139/ssrn.2906523

Cited by 43 publications

(26 citation statements)

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“…Bruhn and Love (2014) show that the positive impact of Banco Azteca's opening of 800 bank branches on employment and income is concentrated in Mexican municipalities that were relatively underserved by banks, as measured by branch penetration. Agarwal, Alok, Ghosh, Ghosh, Piskorski and Seru (2017) show that the government-led Jan Dhan Yojana financial inclusion program in India increased account openings and bank lending relatively more in regions with lower bank branch presence and a higher share of unbanked households. Similarly, we expect the increase in access to credit to be relatively larger in areas with lower financial access prior to the U-SACCO program.…”

Section: Spatial and Borrower Heterogeneitymentioning

confidence: 96%

“…Burgess and Pande (2005) and Burgess, Pande and Wong (2005) show that a large state-led banking expansion program in India significantly reduced rural poverty through increased savings mobilization and credit provision. 4 A recent analysis of the largest financial inclusion program in India (Jan Dhan Yojana) by Agarwal, Alok, Ghosh, Ghosh, Piskorski and Seru (2017), which led to 255 million new bank account openings,…”

Section: Contentsmentioning

confidence: 99%

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Financial Access Under the Microscope

Agarwal

Kigabo²,

Minoiu³

et al. 2018

IMF Working Papers

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We examine the impact of a large-scale microcredit expansion program on financial access and the transition of previously unbanked borrowers to commercial banks. Using administrative micro-data covering the universe of loans to individuals from a developing country, we show that the program significantly increased access to credit, particularly in less developed areas. This effect is driven by the newly setup credit cooperatives (U-SACCOs), which grant loans to previously unbanked individuals. A sizable share of first-time borrowers who need a second loan switch to commercial banks, which cream-skim low-risk borrowers and grant them larger, cheaper, and longer-term loans. These borrowers are not riskier than similar individuals already at commercial banks and only initially receive smaller loans. Our results suggest that the microfinance sector, together with a wellfunctioning credit reference bureau, help mitigate information frictions in credit markets..

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Section: Spatial and Borrower Heterogeneitymentioning

confidence: 96%

Section: Contentsmentioning

confidence: 99%

Financial Access Under the Microscope

Agarwal

Kigabo²,

Minoiu³

et al. 2018

IMF Working Papers

Self Cite

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show abstract

“…In India, for example, a financial inclusion program that led to 255 million new bank account openings was in large part implemented by public banks. The program led to new demand and supply for formal credit and increased borrowing and spending on health (Agarwal et al 2017). And the nationalization of its large private banks in 1980 has been shown to have had a lasting effect on the sectoral allocation of credit, leading to increased lending to agriculture and rural areas, though it did not affect agricultural investment and increased the share of non-performing loans substantially .…”

Section: B) Public Banks Can Support the Most Vulnerablementioning

confidence: 99%

South Asia Economic Focus, Spring 2020 : The Cursed Blessing of Public Banks

2020

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Some rights reserved 1 2 3 4 23 22 21 20 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.

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“…Research conducted by Reference [5] reveals that access to bank cards with credit facilities generated encouraged spending, in many families, on medical treatment, which would have remained untreated if the patients had not had access to such of financial instruments. This can be considered as a positive result of the financial inclusion that has manifested globally in recent years.…”

Section: Expected Benefits From Bank Cardsmentioning

confidence: 99%

Key Factors Determining the Expected Benefit of Customers When Using Bank Cards: An Analysis on Millennials and Generation Z in Romania

2019

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The purpose of this article is to define the level of significance of the different indicators that influence the benefits expected by the customers when deciding on a bank card. The most important indicators that affect the expectations when using the bank card were considered: The level of the credit limit, the existence of rewards programs, the costs associated with the card, the existence of associated services of type e-banking/m-banking, the image and the social status, the possibility to perform ATM cash operations, customer service, ease of use and volume of information on the card. The research was carried out on a sample of 148 bank cardholders in Romania from the Millennials and Generation Z. The values of the indicators for different categories of users of bank cards and different age categories can be determined based on the obtained results and the tests performed. The determined values of the indicators represent the basic elements for building a regression model that will help bank managers to optimize their personalized offers in relation to customer expectations.

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Banking the Unbanked: What Do 255 Million New Bank Accounts Reveal about Financial Access?

Cited by 43 publications

References 10 publications

Financial Access Under the Microscope

Financial Access Under the Microscope

South Asia Economic Focus, Spring 2020 : The Cursed Blessing of Public Banks

Key Factors Determining the Expected Benefit of Customers When Using Bank Cards: An Analysis on Millennials and Generation Z in Romania

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