Improving How Customers Understand Financial Products

November 7, 2017 12:30 PM to 2:30 PM EST

How to Improve Customers' Understanding of Financial Products: Evidence from Mexico and Peru on the Relative Merits of Disclosure and Financial Literacy

On November 7, 2017, Xavier Giné, lead economist at the World Bank Group, presented findings from a recent study co-authored with Cristina Martínez Cuellar and CGAP's Rafe Mazer of 1,700 consumers in Mexico and Peru on the effectiveness of behavioral-based financial disclosure formats. The study sought to understand what methods of knowledge distribution worked best in helping consumers in Mexico and Peru choose the best financial products. It found that while financial literacy is correlated with better decision-making, the format for disclosing loan terms had an impact that was roughly three times larger than that of financial literacy. A standardized statement listing key facts about the loan significantly improved the ability of consumers to make financial decisions. 

Comments

Submitted by Charlotte on

Hi,

I was able to attend the beginning of the webinar on Tuesday, but due to it being scheduled late in the evening for me (I am based in East Africa) I had to drop off after an hour. Are you able to send me the slides or a recording? Would love to see what was discussed in the rest of the meeting.

Thanks!
Charlotte

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