Using Encouragement to Overcome Psychological Barriers to Saving in Peru

Using Encouragement to Overcome Psychological Barriers to Saving in Peru

Innovations for Poverty Action (in conjunction with Catholic Relief Services and Consorcio de Organizaciones Privadas de Promoción al Desarrollo de la Micro y Pequeña Empresa) has implemented a study in Peru that examines the psychosocial barriers to savings, and how they be overcome. The Caja Municipal de Ica, a bank serving the needs of low-income clients in Peru, offers a commitment savings product with rewards (a preferential interest rate) to clients who meet their savings commitments.  The research also assesses the psychosocial impact of the various methods of encouraging clients to save.