Advances in digital technologies and the increased availability of data can be used to support low-income customers to do more than make payments. These advances can help them to make financial decisions and develop strategies to manage their finances.
Financial services providers for low-income customers typically believe that their business case is based on expanding the number of accounts or the number of transactions made by these customers. This is only part of the equation to business success.
This paper analyses the synergies in the distribution of energy and financial services. It describes how an integrated approach could enable financial institutions to profitably serve low-income populations, thus enabling a significant source of growth.
This paper draws upon formative research, “resilience diaries,” qualitative follow-up, and economic games to illustrate how families anticipate and cope with shocks in Burkina Faso. Designing for these household behaviors and preferences could improve financial services offered for building resilience.
Based upon the findings of a field experiment conducted in rural Burkina Faso, this working paper suggests that health savings accounts and health loans have the potential to help the poor better manage health shocks and build resilience.
The findings presented in this working paper are based upon research conducted in Burkina Faso. They provide unique insights into the set of factors, if reinforced by financial institutions and development practitioners, that are likely to strengthen household resilience.
This case study from Burkina Faso highlights key findings from the CGAP resilience research that can help guide further thinking about how to best design financial products for anticipating and covering health shock expenses.