Decentralized Delivery of Financial Education: Experimental evidence from Rwanda

A field experiment with 200 Savings and Credit Cooperative Associations, and tests competing models of local financial education deliver

Abstract

We implement a large-scale field experiment with 200 Savings and Credit Cooperative Associations (SACCOs) in Rwanda, and test competing models of local financial education delivery. One-third of SACCOs were invited to a comprehensive training-of-trainers (TOT) workshop and stipulated to send the SACCO manager, a loan officer, and a community board member to be trained. Another one-third were allowed free selection of trainers, which resulted in greater community representation and lower loan officer involvement at the TOT and higher attendance rates at the beneficiary trainings. We find no improvements in financial practices or behavior among the fixed selection group, but statistically significant and larger improvements in financial planning, rules of thumb, and savings deposits among the autonomous selection group. Qualitative fieldwork to understand mechanisms underscores the importance of community-led delivery of the financial education program.

This is an output of the World Bank’s Strategic Research Program

Citation

Emmanuel Hakizimfura, Douglas Randall, Bilal Zia, Decentralized delivery of financial education: Experimental evidence from Rwanda, Journal of Development Economics, Volume 144, 2020, https://doi.org/10.1016/j.jdeveco.2020.102439.

Decentralized Delivery of Financial Education: Experimental evidence from Rwanda

Published 1 May 2020