Tablet-based financial education, Colombia Impact evaluation: - - PowerPoint PPT Presentation

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Tablet-based financial education, Colombia

Impact evaluation: short-term results

This is an IPA project funded by the Citi IPA Financial Capability Research Fund supported by the Citi Foundation.

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Context and motivation

• 3 of 4 newly banked have not received any form of financial

training (Deb & Kubzansky 2012)

• In-person or classroom-based interventions are difficult to scale

and can be ineffective, particularly for adults (Miller et al 2015, Fernandes et

• al. 2014, Xu and Zia 2014)

Looking for alternative scalable solutions

• targeting
• simplification
• new channels | eg. mobile phones, online courses, DVDs, videos,

radio, and television (Lundberg & Mulaj 2014; Berg & Zia 2013; Karlan et al. 2011; Carpena

et al. 2011).

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By “Freeing Financial Education” via a tablet application

Tablet-based Financial Education

LISTA Project

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Advantages of tablets

Can work in remote areas Allows people to train themselves Simple user design Can rotate within the communities taking advantage of local social capital

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Register – Survey – Module Content – Program Information – Practice – Games

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Target Population CCT Beneficiaries

50% Rural 91% Women Low education levels

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Informal savings

82% physically withdrawn the cash transfer

0% 10% 20% 30% 40% 50% 60% <15 15-30 30.1-75 75.1-150 150.1-260 260.1-300 300.1-600 >600 PIGGY BANK/HOUSE SAVINGS CHAIN PIGGY BANKS AND SAVINGS CHAIN

42% of the sample save money informally

USD

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Formal savings

82% physically withdrawn the cash transfer

0% 10% 20% 30% 40% 50% 60% <15 15-30 30.1-75 75.1-150 150.1-260 260.1-300 300.1-600 >600 BANK COOPERATIVE SAVINGS GROUP MULTIPLE

18% saved in a formal or semi-formal

USD

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Budgeting practices

82% physically withdrawn the cash transfer

Other Adult 17% Share the responsibility 16% CCT Beneficiary 67% Written 22% Not written 78%

Who is responsible for household finances? The household budget is:

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Bank account Cash

Cash vs. Bank Savings Preferences

25$ 25$ 62%

38%

31% of people prefering cash would switch with 34$

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Evaluating LISTA

Research by:

Orazio Attanasio (University College London) Matthew Bird (Universidad del Pacifico) Pablo Lavado (Universidad del Pacifico)

Funded by the Citi IPA Financial Capability Research Fund supported by the Citi Foundation.

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+ +

Use LISTA Tablet Financial Capability Kit SMS Rules of Thumb

1. Greater financial knowledge 2. Higher financial practice adoption 3. Better financial performance

Inputs

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Municipalities Treatment neighborhoods

Study Design

Randomized Controlled Trial

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Treatment Control

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Data Collection

BASELINE SHORT-TERM FOLLOW-UP ENDLINE TELEMETRIC BANK DATA ON BALANCES AND TRANSACTIONS

May 2015 October 2015 April 2016

Study Design

Timeline

We are here!

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Preliminary short-term impact

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Preliminary findings

Promising short-term impacts in:

Financial Literacy Budgeting Savings

• Goals
• Formal
• Informal

No Change in Household Financial Management Responsibilities Consistent with other short-term results from financial education

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Thanks!

Promising results! Cautionary notes:

• Short-term data (immediately after the intervention)
• Self-reported information
• Not yet evidence of behavior change

We are working on a follow-up (6 months later) combining survey and administrative data on account ownership and balances. Marta Carnelli mcarnelli@poverty-action.org