Commitment Savings Accounts in Malawi

Malawi s economy is heavily dependent on agriculture, especially tobacco, which comprises a majority of the country s exports. Tobacco farmers have one harvest a year, and while their income stream occurs over several months it must last them for the entire year, making it difficult to smooth consumption throughout the year. The objective of this case study is to present the design and implementation of a commitment savings product for groups of tobacco farmers in Malawi. The product was successful in encouraging savings, increasing input purchases and yields for the next year s harvest, and increasing consumption after the harvest. The following sections describe the lack of formal savings options for rural farmers, the behavioral concept behind commitment savings accounts, the product designed to address these problems and subsequent changes to the original design, results of a field experiment evaluating the product, and lessons learned for other commitment savings products.

Bibliographic Details

Main Author:	International Finance Corporation
Format:	Working Paper biblioteca
Language:	English en_US
Published:	Washington, DC 2015-03
Subjects:	ACCESS TO FINANCE, ACCESS TO FUNDS, ACCESSIBILITY, ADVISORY SERVICES, AFFILIATES, APPROVAL PROCESS, AUCTION, AUCTIONS, BANKING SERVICES, BANKING SYSTEM, BANKS, BARRIER, CLUB ACCOUNTS, COOPERATIVES, CREDIT ASSOCIATIONS, DEBT, DELIVERY MECHANISM, DEPOSIT ACCOUNT, DEPOSITS, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DIRECT DEPOSIT, DISTRIBUTION SYSTEM, EMPLOYEE, FARMER, FARMERS, FINANCIAL ACCESS, FINANCIAL INSTITUTIONS, FINANCIAL PRODUCTS, FINANCIAL SERVICES, FIXED DEPOSIT, FLOW OF FUNDS, FORMAL BANKING, FORMAL SAVING, FORMAL SAVINGS, FUNDS FLOW, GROUP ACCOUNT, GROUP LOANS, HIGH INTEREST RATES, INCOME, INDIVIDUAL ACCOUNTS, INFORMAL INSURANCE, INTERNATIONAL BANK, JOINT LIABILITY, LACK OF ACCESS, LOAN, LOCAL FARMERS, LOTTERIES, MICROFINANCE, MICROFINANCE LOANS, MOBILE BANKING, NET SAVINGS, NEW PRODUCT, NEW PRODUCTS, NUTRITION, OUTREACH, PENSION, PENSION SYSTEM, POLITICAL ECONOMY, POOR, PROFITABILITY, RATE OF RETURN, RATES OF INTEREST, REPAYMENT, RETIREMENT, RETIREMENT SAVINGS, RURAL, RURAL AREAS, RURAL FARMERS, SAFETY, SAVINGS, SAVINGS ACCOUNT, SAVINGS ACCOUNTS, SAVINGS PRODUCT, SAVINGS PRODUCTS, SMALL FARMERS, SMART CARD, SOCIAL NETWORKS, UNSTABLE INCOMES, VILLAGE,
Online Access:	http://documents.worldbank.org/curated/en/2015/03/24158205/commitment-savings-accounts-malawi-product-design-case-study https://hdl.handle.net/10986/21681
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