Delivering Conditional Cash Transfers Through Bank Accounts: An experimental Evaluation

Financial access and formal savings can help lower income families face economic shocks, accumulate resources and have more control over their funds. Despite all of these potential benefits, evidence on facilitating financial... [ view full abstract ]

Financial access and formal savings can help lower income families face economic shocks, accumulate resources and have more control over their funds. Despite all of these potential benefits, evidence on facilitating financial access to the poor is still limited and mixed. In this context, we study the impact on offering beneficiaries of conditional cash transfer in Chile, the option to receive their subsidies in a bank account instead of a check. We randomly assigned individuals to treatment and control groups. Using survey data, we find that between two and three years after the offer was made there are no effects on savings, debt or subjective well-being