Learning to Navigate a New Financial Technology: Evidence from Payroll Accounts

Emily Breza, Martin Kanz and Leora Klapper

No 15565, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We present results from a field experiment that introduced digital payroll accounts to unbanked factory workers to examine how inexperienced consumers learn to use a new financial technology. We find that exposure to payroll accounts leads to increased account use, accelerated learning, and avoidance of common consumer protection risks. Those receiving electronic wage payments gradually build trust in the technology, learn to use accounts without assistance, and avoid illicit fees. Using experimental variation in assignment to bank versus mobile money accounts, we show that these impacts are concentrated in mobile money accounts, the newer, more complex, and less trusted financial technology.

Keywords: Learning; Financial inclusion; Financial consumer protection (search for similar items in EconPapers)
JEL-codes: G5 G51 G53 O16 (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-acc, nep-exp and nep-pay
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Citations: View citations in EconPapers (50)

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Working Paper: Learning to Navigate a New Financial Technology: Evidence from Payroll Accounts (2020)
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