In this paper, leading scholars Karlan, Ratan and Zinman provide an overview of solid academic research on savings and note:
- Studies show large positive impacts on various outcomes from improvements in access to and usage of formal savings, and hint at more transformative impacts than found thus far in similar evaluations of microcredit (Banerjee, 2013)
- Evidence suggests that the poor have substantial (latent) demand for savings
The authors also lay out five sets of constraints that “may hinder the adoption and effective usage of savings products and services by the poor: transaction costs, lack of trust and regulatory barriers, information and knowledge gaps, social constraints, and behavioral biases”.
SmartMoney overcomes all of these constraints.