Evaluation
Researchers worked with Bank Rakyat Indonesia and the Microfinance Innovation Center for Resources and Alternatives to measure the impact of incentives and financial education on savings account take-up. Results indicated that the financial education program was not an effective tool for promoting the use of bank accounts, but modest financial subsidies did increase the share of households that opened a formal savings account. Overall, these results suggest that take-up of formal financial services may be more easily achieved through measures designed to reduce the price of financial services, rather than through large-scale financial literacy education.