Latest Findings from Randomized Evaluations of Microfinance

This paper summarizes the latest research findings from a new body of empirical evidence that uses randomized evaluations, similar to those used in medical trials, to compare how one group responds to access to specific new financial services against how a comparable group fares without those services. This paper goes back a couple of years to the first studies that used this approach, and summarizes a series of research studies presented at the October 2010 microfinance impact and innovation conference in New York. These studies evaluated product design for a range of financial services, including credit, savings, and insurance. The studies discussed here were undertaken by research affiliates of Innovations for Poverty Action (IPA), the Financial Access Initiative (FAI), and the Abdul Latif Jameel Poverty Action Lab (J-PAL) at the Massachusetts Institute of Technology; they are all randomized evaluations unless otherwise specified. Part one of this paper reviews the main results from randomized evaluations that measure the impact of microcredit and micro savings on business investment and creation, consumption, and household well-being. Part two presents evidence from evaluations of products and delivery design. Part three discusses the evidence on micro insurance products.

Bibliographic Details

Main Authors:	Bauchet, Jonathan, Marshall, Cristobal, Starita, Laura, Thomas, Jeanette, Yalouris, Anna
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2011-12
Subjects:	ACCESS TO CAPITAL, ACCESS TO CREDIT, ACCESS TO FINANCE, ACCESS TO FINANCIAL SERVICES, ACCESS TO FORMAL CREDIT, ACCESS TO INSURANCE, ACCESS TO LOANS, ACCESS TO SAVINGS, ACCOUNTING, AMOUNT OF MONEY, ANNUAL PERCENTAGE RATE, APPLICATION PROCESS, APR, ASYMMETRIC INFORMATION, AVAILABILITY OF CREDIT, BANK ACCOUNT, BANK ACCOUNTS, BANKS, BIASES, BORROWER, BORROWING, BUSINESS ACTIVITIES, BUSINESS ACUMEN, BUSINESS FAILURE, BUSINESS LOANS, BUSINESS OPPORTUNITIES, BUSINESS SCHOOL, BUSINESS SUCCESS, BUSINESS TRAINING, CAPITAL STOCK, CASH FLOW, CHILD DEVELOPMENT, CHILD-CARE, CLEAN CREDIT, COLLATERAL, COMPOUND INTEREST, CONSUMER, CONSUMER CREDIT, CONSUMER FINANCE, CONTRIBUTION, CREDIT ACCESS, CREDIT HISTORY, CREDIT MARKET, CREDIT OFFICERS, CREDIT PRODUCT, CREDIT RELATIONSHIPS, CREDIT RISK, CREDIT SCORING, CREDIT SCORING MODELS, CREDIT WORTHINESS, CREDIT-SCORING, CROP FAILURE, CROP INSURANCE, CURRICULUM, DEFAULTERS, DEMOGRAPHIC CHARACTERISTICS, DEPOSIT, DEPOSIT INSURANCE, DEVELOPING COUNTRIES, DROUGHT, DURABLE, DURABLE GOODS, EARNINGS, ECONOMIC ACTIVITIES, ECONOMIC POLICY, EDUCATION LEVEL, EMPOWERMENT, ENROLLMENT, ENTREPRENEUR, ENTREPRENEURIAL BEHAVIOR, ENTREPRENEURIAL SUCCESS, EXISTING DEBT, EXPENDITURE, EXTRA CASH, FAMILIES, FAMILY MEMBERS, FARM INCOME, FARMER, FEMALE ENTERPRISES, FEMALE-OWNED BUSINESSES, FINANCE COMPANY, FINANCES, FINANCIAL ACCESS, FINANCIAL LITERACY, FINANCIAL LITERACY TRAINING, FINANCIAL MANAGEMENT, FINANCIAL MARKET, FINANCIAL NEEDS, FINANCIAL OUTCOMES, FINANCIAL PRODUCT, FINANCIAL RESOURCES, FINANCIAL SERVICE PROVIDERS, FINANCIAL SERVICES, FINANCIAL SUCCESS, FINANCIAL_ACCESS, FLEXIBLE REPAYMENT, FORMAL FINANCIAL SERVICE, FORMAL FINANCIAL SERVICES, GENDER, GENERAL POPULATION, GOOD CREDIT, GOOD CREDIT HISTORIES, GRANTS TO WOMEN ENTREPRENEURS, GROUP LENDING, GROUP LOANS, HIGH INTEREST RATE, HOME IMPROVEMENTS, HOUSEHOLD EXPENDITURE, HOUSEHOLD INCOME, HOUSEHOLD INVESTMENTS, HOUSEHOLD WELFARE, HOUSEHOLDS, HUSBANDS, INCOME STREAMS, INCOMES, INFORMAL CREDIT, INFORMAL INSURANCE, INFORMAL LOANS, INFORMAL SAVINGS, INFORMATION ASYMMETRY, INFORMATION ON BUSINESS, INSURANCE COMPANY, INSURANCE POLICY, INSURANCE SCHEME, INVENTORY, INVESTING, INVESTMENT CAPITAL, LACK OF ACCESS, LENDER, LENDING DECISION, LIABILITY, LIMITED ACCESS, LOAN, LOAN ACCESS, LOAN AMOUNT, LOAN APPLICANTS, LOAN APPLICATION, LOAN APPROVAL, LOAN DISBURSEMENT, LOAN REPAYMENT, LOAN REPAYMENT RATES, LOANS FROM FRIENDS, LONG-TERM GOALS, LOW-INCOME, LOW-INCOME WORKERS, MAINSTREAM BANK, MARKETING, MEDICAL EXPENSES, MERCHANTS, MICROCREDIT, MICROFINANCE, MICROFINANCE INSTITUTIONS, MICROINSURANCE, MONEY MANAGERS, MONEYLENDER, MONTHLY INCOME, MORAL HAZARD, NEW BUSINESS, OUTREACH, PENETRATION RATES, PERSONAL INCOME, POOR CLIENTS, PROBABILITY, PURCHASES, RATES OF RETURN, RECEIPT, REPAYMENT, REPAYMENT SCHEDULES, RESOURCE ALLOCATION, RETURNS, RISK AVERSION, RISK MANAGEMENT, RISK MITIGATION, RISK PROFILE, RISKY LOANS, RURAL BANK, SAFETY NET, SALES, SAVER, SAVERS, SAVINGS, SAVINGS ACCOUNT, SAVINGS GOALS, SAVINGS PRODUCT, SCHOOL FINANCE, SELF-EMPLOYMENT, SMALL BUSINESS, SMALL BUSINESS ENTREPRENEURS, SMALL BUSINESS LOAN, SMALL BUSINESS OWNERS, SMALL ENTERPRISES, SMALL LOANS, SMART MONEY, SOCIAL CAPITAL, SOCIAL NETWORK, SOUND FINANCIAL PRACTICES, SUM OF MONEY, TAKE-UP RATES, TRAINING PROGRAM, TUITION, UNEMPLOYED, UNEMPLOYED WOMEN, USURY, VALUABLE, VENTURE CAPITAL, VENTURE CAPITAL FIRMS, VILLAGE, VOUCHER, WAGE, WELFARE BENEFITS, WITHDRAWAL, WITHDRAWAL FEES, WORK FORCE, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/324001468329347456/Latest-findings-from-randomized-evaluations-of-microfinance https://hdl.handle.net/10986/26892
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