Commitment Savings Accounts in Malawi : A Product Design Case Study
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 t...
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| Format: | Working Paper |
| Language: | English en_US |
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2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/03/24158205/commitment-savings-accounts-malawi-product-design-case-study http://hdl.handle.net/10986/21681 |
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okr-10986-216812021-04-23T14:04:04Z Commitment Savings Accounts in Malawi : A Product Design Case Study International Finance Corporation 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 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. 2015-04-02T21:12:45Z 2015-04-02T21:12:45Z 2015-03 Working Paper http://documents.worldbank.org/curated/en/2015/03/24158205/commitment-savings-accounts-malawi-product-design-case-study http://hdl.handle.net/10986/21681 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ International Finance Corporation Washington, DC Publications & Research Publications & Research :: Working Paper Africa Malawi |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
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 |
| spellingShingle |
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 International Finance Corporation Commitment Savings Accounts in Malawi : A Product Design Case Study |
| geographic_facet |
Africa Malawi |
| description |
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. |
| format |
Working Paper |
| author |
International Finance Corporation |
| author_facet |
International Finance Corporation |
| author_sort |
International Finance Corporation |
| title |
Commitment Savings Accounts in Malawi : A Product Design Case Study |
| title_short |
Commitment Savings Accounts in Malawi : A Product Design Case Study |
| title_full |
Commitment Savings Accounts in Malawi : A Product Design Case Study |
| title_fullStr |
Commitment Savings Accounts in Malawi : A Product Design Case Study |
| title_full_unstemmed |
Commitment Savings Accounts in Malawi : A Product Design Case Study |
| title_sort |
commitment savings accounts in malawi : a product design case study |
| publisher |
Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/03/24158205/commitment-savings-accounts-malawi-product-design-case-study http://hdl.handle.net/10986/21681 |
| _version_ |
1764448966360956928 |