Delivering Conditional Cash Transfers via Savings Accounts

Abstract

“Improving the financial inclusion of the poor is a global challenge that, if overcome, could help many to escape poverty. To tackle this challenge, some conditional cash transfer (CCT) programmes have started depositing transfers directly into beneficiaries’ savings accounts. One such programme is PROSPERA, formerly PROGRESA/Oportunidades, in Mexico. As of January 2012, all six million recipients of the programme received transfers directly into savings accounts at the Banco del Ahorro Nacional y Servicios Financieros (BANSEFI). Thus, most of the poorest Mexican households have been incorporated into the formal financial system. However, empirical evidence suggests there is still a long way to go before PROSPERA recipients can be considered included in the Mexican financial system.”(…)