http://cfi-blog.org/2012/04/30/understanding-savings-behavior-a-comment-on-the-financial-behavior-of-rural-residents/ Fri, 04 Oct 2013 15:39:41 +0000 hourly 1 http://wordpress.com/ http://cfi-blog.org/2012/04/30/understanding-savings-behavior-a-comment-on-the-financial-behavior-of-rural-residents/#comment-3964 Wed, 02 May 2012 17:48:08 +0000 http://centerforfinancialinclusionblog.wordpress.com/?p=6388#comment-3964 Dear Guy:
I’m glad you commented about my favorite part of the report. I will add to it. We conducted a savings analysis in order to develop a financial model that could address the issue of savings profitability for low-income populations that save small amounts. Certainly we found that the way people save has more to do with the purpose behind why they are saving than with their socioeconomic level.
Analyzing the behavior of savings clients in regards to when they save, (before or after they spend), is important not only for crafting an effective channel strategy but also for tracking the evolution of a savings market. “To save before you spend” is to prioritize savings– no matter the amount, which in the case of this research is only 15 percent. My hypothesis is that in other markets such as the ones in Africa or Asia, where savings is a custom; this percent will be higher. I’d love to know how much it is.
Indeed, there are a variety of research methodologies and we can even combine some of them but I agree that it’s important to stay focused on behavior and the meticulous testing of hypotheses that will generate valuable research and information.

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