Forward this Session

Forward this Session

DESIGNING ATTRACTIVE SAVINGS PRODUCTS FOR LOWER-INCOME CONSUMERS (COMPASS PRINCIPLE: PROMOTE SUCCESS)

Basic savings products have a fundamental role in creating an inclusive financial system. While the hope is that savings accounts can be used to secure a nest egg of precautionary savings to safeguard a family when emergency expenses or decreases in income arise, several in-market launches of basic savings products targeted to lower-income consumers (often called small dollar savings products) yield disappointing enrollment rates and chronically low balances. Before concluding that there is no demand for savings products among lower-income consumers, program managers need to ask: Is there a better way to design more attractive and useful savings products for this target market? Based on an in-depth review of household surveys, academic research, industry reports and pilot program evaluations on financial services and savings, this session will evaluate the market potential and consumer preferences for small dollar savings products among lower-income consumers and discuss how program managers can select different product features, pricing structures, distribution channels and promotional activities to tailor an offering that is beneficial for consumers and the provider.

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