Given that the project Haku Wiñay is in the final stage of its first expansion phase, after carrying out the corresponding pilot test, Proyecto Capital decided to undertake a qualitative study. This study sought to explore, selectively, the results achieved and the lessons that arise from the aforementioned financial abilities promotion component.
In order to write this InShort, the last version of the qualitative study’s final report was used, after it had been debated and had received feedback from peers at MIDIS and FONCODES. This InShort contains the main outcomes of the study mentioned above. The study started with a review of the main training materials prepared in FONCODES. Then, three districts where the project is executed were visited and their outcomes compared. In each of the visited locations, the project’s users were interviewed (savings accounts holders and non-holders) as well as the personnel in charge of executing the project. This amounts to a total of 78 individual interviews, a part from one interview held in the Foncodes’ headquarters in Lima.
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.