Neighbourhood social capital, account usage and savings behaviour in low-income countries: Field experimental evidence from Senegal

Abstract

Financial inclusion is an important driver of economic growth, but gender gaps persist in financial activity, especially in low-income countries. This study analyses the impact of text messages that make salient neighbours' savings behaviour on account usage and savings behaviour of low-income men and women in Senegal. We performed a randomized field experiment in which 2056 clients of a local financial institution were assigned to one of three experimental conditions. We found gender differences in how these text messages impact savings and account usage. Account usage, account activity and average savings balances of female clients who received weekly savings reminders making their neighbours' savings behaviour salient increased compared to those who received generic savings reminders and those who received no savings reminders. The treatment had no impact on male clients. These results suggest that content-specific text message reminders can create benefits for both the supply and demand side of financial services for women in low-income countries, thereby increasing financial inclusion.