Rural Micro-savings Accounts Using Mobile Phones and Cards

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In Peruvian rural areas, the cost of offering microsavings accounts to low income families through traditional branches limit financial intermediaries from offering them. Even those financial intermediaries, such as the Municipal Savings Banks that target low income microentrepreneurs cannot serve those clients with traditional branch operations. The project seeks to provide access to financial services in remote rural areas. Initially, it will focus on micro savings, which have been shown to reduce vulnerability of low income families to unexpected events, increase investments in productive activities and family needs and and promote savings as a way to increase their opportunities to grow and improve quality of lives. MIF additionality will result from testing new use of existing technologies (mobile phones and pre-paid phone cards).Technology for promoting micro savings and accessing remote areas with a reliable, and well positioned partner. This is likely to generate key lessons for replication and scale up of rural microsavings with low income families in other parts of the region.