A Personal Touch: Text Messaging for Loan Repayment
Melanie Morten,
Dean Karlan and
Jonathan Zinman
No 121867, Center Discussion Papers from Yale University, Economic Growth Center
Abstract:
We worked with two microlenders to test impacts of randomly assigned reminders for loan repayments in the “text messaging capital of the world”. We do not find strong evidence that loss versus gain framing or messaging timing matter. Messages only robustly improve repayment when they include the loan officer’s name. This effect holds for clients serviced by the loan officer previously but not for first-time borrowers. Taken together, the results highlight the potential and limits of communications technology for mitigating moral hazard, and suggest that personal obligation/reciprocity between borrowers and bank employees can be harnessed to help overcome market failures.
Keywords: Consumer/Household Economics; Financial Economics; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 19
Date: 2012-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)
Downloads: (external link)
https://ageconsearch.umn.edu/record/121867/files/1011%20complete.pdf (application/pdf)
Related works:
Working Paper: A Personal Touch: Text Messaging for Loan Repayment (2012) 
Working Paper: A Personal Touch: Text Messaging for Loan Repayment (2012) 
Working Paper: A Personal Touch: Text Messaging for Loan Repayment (2012) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ags:yaleeg:121867
DOI: 10.22004/ag.econ.121867
Access Statistics for this paper
More papers in Center Discussion Papers from Yale University, Economic Growth Center Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().