Financial inclusion and financial education are part of the current debate on the development of policies that contribute to poverty alleviation, as a complementary strategy to pro-ductive development projects for poor households, and as a tool to generate capacities in the context of the discussion about multidimensional poverty.
The countries in the region have committed themselves to promoting financial inclusion, relating to economic aspects as well as to aspects of social inclusion. In this context, financial inclusion is not simply about the existence of a supply side with competitive financial products and services. Instead, it aims to provide the knowledge and skills necessary to make effective, sustainable, and protected use of these products and services, so they can reach all segments of the population.
With the goal of highlighting and discussing the advances and challenges surrounding financial inclusion, the Regional Meeting on Financial Inclusion and Education Experiences in Latin America and the Caribbean was held between September 30 and October 3 of 2014 in Santiago de Chile, bringing together policymakers, academics and executives of financial institutions from more than 10 countries in Latin America and the Caribbean. The Meeting was organized by the Fondo de Solidaridad e Inversión Social - FOSIS (Solidarity and Social Investment Fund of Chile) and the Proyecto Capital, funded by the Ford Foundation and the International Development Research Centre - IDRC of Canada; with the support of the Agencia de Cooperación Internacional del Japón – JICA (Japan International Cooperation Agency), the Agencia de Cooperación Internacional de Chile - AGCI (International Cooperation Agency of Chile), and the Mesa de Educación Financiera - MEF (Financial Education Roundtable) of Chile.
This publication summarizes the main conclusions and challenges that were presented at the Regional Meeting, during which the various participants demonstrated their ongoing commitment to achieve profound economic and social transformations to overcome the conditions of exclusion and vulnerability of the poor.
This inshort offers insight into the best strategies for taking advantage of the benefits of using technologies for financial inclusion for users of social programs. It summarizes the results of an intervention for financial inclusion of users of the JUNTOS CCT program, based on the installation of POS technology for making purchases with debit cards at businesses near the users’ homes.
The Technological Platforms pilot project was implemented jointly by Visa International, VISANET, the Banco de la Nación (BN), the Ministry of Development and Social Inclusion, the JUNTOS Program and the Instituto de Estudios Peruanos (IEP), as part of Proyecto Capital. These public and private stakeholders sought to provide a service network for users of the JUNTOS Program using POS sales technology in 10 local businesses located in four districts in the department of Junín.
The project is relevant because it places importance on addressing aspects related to both supply (e.g., technologies for the use of services) and demand (e.g., FE) to guarantee a full process of financial inclusion. The main lesson from these observations, however, is that the mere installation of a technology platform does not automatically result in its use by vulnerable populations.
This paper shows the impact of the Promotion of Savings Pilot Program (PSPP) on productive investment (agriculture, livestock and business initiatives) and on food consumption, distinguishing between consumption in the highest-income and lowest-income months of the year.
The results show a positive effect on productive investment, which suggests an increase in total savings. There are differences in investment depending on the degree of poverty: for the poorest 50 percent of households, there has been an impact on the use of agricultural inputs, while for the least-poor 50 percent, there was an impact on the purchase of large animals, which underscores the lower investment capacity of the poorest households in the population studied.
The results also show that the PSPP has not resulted in improved food consumption in the lowest income month. On the contrary, households belonging to the treatment districts (which received financial education) have a lower level of consumption in the months when the household has the lowest income. It is likely that the greater investment in agricultural inputs, along with the promotion of a fixed amount of saving during the training, have contributed to these results. Given the type of investment found (in productive assets and agricultural inputs), however, it is very likely that these negative results will reverse in the future, because of higher income from farm and livestock resulting from increased investment.
In this paper the authors want to highlight the benefits of savings accounts for women by illustrating the successful experiences and lessons learned with two Peruvian government projects designed to mobilize savings amongst its poor rural populations, mostly in the Southern Highlands region of the country.
The report is as follows: Section II briefly covers literature on savings both in the general context and particularly to women. Section III first outlines the current context of Peru, and later the two government programs. In Section IV we cover the impacts of the aforementioned programs on female beneficiaries. Lastly, in Section V we conclude with suggestions for future use of savings accounts in development projects.
This document presents the final design of our research project titled in Spanish “Ahorro, Contabilidad Mental, Ahorro por Default y Transferencias Monetarias Condicionadas”. In particular it describes our intervention, the context of our research, the hypothesis we try to test, and the theory of change. We explicitly state our main research questions and describe in detail our research methodology. We also comment on our expected results.
The Country assessment of Guatemala was prepared in order to present a summary of Conditional Cash Transfer (CCT) Programs in this country and emphasize the opportunities for linking a financial inclusion project with CCT Programs. Moreover, we summarized the situation of the financial system in Guatemala. Finally, we proposed recommendations for the current strategies.