Commitments to Save - Innovations for Poverty Action
Commitments to Save - Innovations for Poverty Action
Commitments to Save - Innovations for Poverty Action
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External validity: some caveats<br />
• We do not test impact of direct deposit itself, which may be<br />
important<br />
– Aside from the direct deposits, other deposits in<strong>to</strong><br />
accounts very low<br />
– So not clear that simply setting up commitment accounts<br />
would have high impact without the direct deposit<br />
• Most applicable <strong>to</strong> cash crop farmers where sale proceeds can<br />
be channeled directly in<strong>to</strong> bank accounts by the crop buyer<br />
– Higher income on average than typical farmer<br />
– But also relatively easy <strong>to</strong> access – “low hanging fruit”<br />
• Potentially easy means <strong>for</strong> MFIs <strong>to</strong> raise farm inputs and<br />
incomes <strong>for</strong> current loan cus<strong>to</strong>mers<br />
– Common <strong>for</strong> lenders <strong>to</strong> have direct funds-transfer<br />
arrangements with cash crop buyers <strong>for</strong> loan recovery<br />
– Current loan cus<strong>to</strong>mers can simply be offered direct<br />
deposit of crop proceeds in<strong>to</strong> commitment accounts<br />
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