Financial Access Initiative
The Financial Access Initiative (FAI) is a US research center whose research focuses on the question of how financial services could better meet the needs of poor households and improve the lives of poor people. A central role here is to give poor households access to fair and useful financial services. Institutionally, the Financial Access Initiative is linked to New York University .
history
The Financial Access Initiative was founded in 2006 by economists Jonathan Morduch ( New York University ), Dean Karlan ( Yale University ) and Sendhil Mullainathan ( Harvard University ) at the Robert F. Wagner Graduate School of Public Service at New York University. The initial funding of the research center of USD 5 million was donated by the Bill and Melinda Gates Foundation . In addition, the FAI receives additional funds from the American International Group (AIG), which in particular benefit a research initiative in the field of microinsurance.
research
So far, the FAI's research has focused primarily on the topic of savings . In this regard, the FAI looks at four questions related to poor households:
- (1) Why save? At first glance, it should seem obvious that poor families cannot save. When poor, poor households are likely to have immediate needs so much that providing for the future is a luxury. However, empirical research by the FAI contradicts this assumption and identifies behavioral economic factors, transaction costs and cultural effects as important causes for poor families to save less than they could.
- (2) Can savings be generated profitably? The provision of savings, unlike credit, has no built-in return to cover the cost of generating and managing the financial service. FAI research has shown that banks often fail to provide financial services to the poor because their bank accounts are unprofitable due to administrative costs exceeding interest rates. The management of bank accounts developed specifically for the poor using modern technology could represent a solution in view of economies of scale. Product innovation in the field of financial services, which, for example, use the psychological effects of social networks to reduce the risk (and thus also the risk premium) of financial services, also plays an important role.
- (3) What are some important new ideas about saving? The FAI looks at both the development of innovation in economy-friendly financial services in general and two specific areas that have seen a high level of innovation in the present: mobile banking and behavioral finance .
- (4) How do households save? The assessment of the extent and use of savings by the poor has long been hampered by a limited understanding of the definition of savings, in which only long-term accumulations of money in bank accounts are recognized as savings. Research by the FAI in collaboration with Daryl Collins found that poor households use a variety of short-term savings mechanisms. These include investments in education for the next generation, family-run micro-businesses and investments in long-term valuable goods (e.g. jewelry or cattle).
Individual evidence
- ↑ http://www.financialaccess.org/about
- ↑ Archive link ( Memento of the original dated November 1, 2013 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Archive link ( Memento of the original from December 27, 2012 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Archive link ( Memento of the original dated December 28, 2012 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Archive link ( Memento of the original from December 27, 2012 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Archive link ( Memento of the original from December 27, 2012 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
