Just a bit of cushion: The role of a simple savings device in meeting planned and unplanned expenses in rural Niger

Abstract

The welfare impacts of expanding access to new financial services depend upon whether such services better meet households’ financial needs in terms of savings, investment and insurance. We report the results of a randomized control trial in Niger, whereby households were provided with access to a simple savings device – an individual lockbox – or SMS reminders. Overall, take-up and usage of the lockbox was high. Overall savings in the lockbox treatments was higher at endline, although this is not statistically significant at conventional levels. The lockboxes did not affect households’ ceremonial or overall health expenditures, but did partially help households to cope with the negative impacts of a health shock. Overall, there were no additional effects of the SMS reminders. Taken together, these results provide further evidence that simple savings devices can meet an unmet demand for a secure place to save. This work is part of the Closing the Gender Gap in Africa: evaluating new policies and programmes for women’s economic empowerment programme