This report addresses the phenomenon of “dormancy” in the savings accounts of new owners of financial accounts, whereby the newly established accounts go unused after initial deposits are complete. The authors describe the use of coaching – via phone calls and SMS messages – to increase the usage of digital savings accounts by both men and women.
The subjects of the study are customers of an affiliate of US-based FINCA International (Foundation for International Community Assistance) that provides microcredit and deposit services in Uganda. The microbank’s savings accounts are designed for clients with a specific savings goal, for which a schedule of deposits is created.
The authors find that remote coaching had a minimal effect on average account balances but noticeably increased the use of banking agents as well as the values of transactions, deposits and withdrawals. In particular, the authors cite the outcomes among the women in the study: the number of deposits women made increased by 86 percent, and their total number of transactions doubled.
Factors associated with increased saving by women include the potential for protection against uncertainty, an optimistic view of the future, increased self-esteem, women’s empowerment and access to convenient and user-friendly services. To boost women’s confidence in savings, the authors propose the following “fundamentals of inclusive savings:” (1) provide a simple service; (2) charge no fees; (3) offer access to live help when needed; and (4) provide privacy and safety.
This is a summary of a paper by Scott Graham, Anahit Tevosyan, Nathaniel Mayende, Ester Agasha, Joeri Smits and Sally Yacoub; published by World Savings and Retail Banking Institute (WSBI); October 2022; 20 pages; available at https://www.wsbi-esbg.org/wp-content/uploads/2022/10/Remote_Coaching_Final_271022_print_SG-update.pdf.
By Renata Samadova, Research Associate
Additional Resources
WSBI homepage
https://www.wsbi-esbg.org
FINCA homepage
https://finca.org
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