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Local ambassadors promote mobile banking in Northern Peru

Author

Listed:
  • Marcos Agurto

    (Universidad de Piura)

  • Habiba Djebbari

    (Aix-Mareseille Universite)

  • Sudipta Sarangi

    (Virginia Tech)

  • Brenda Silupu

    (Universidad de Piura)

  • Carolina Trivelli

    (Instituto de Estudios Peruanos)

  • Javier Torres

    (Universidad del Pacifico)

Abstract

We experiment with a novel way to boost information acquisition that exploits existing social ties between the promoter of a new financial technology and community members. We offer information and training workshops on a new mobile-money platform in periurban and rural areas in Peru. In the treatment group, workshops are led by promoters who are personally known to the invited participants. In the control group, comparable individuals are invited to attend similar workshops, but the workshops are led by agents external to the community. Our findings suggest that lack of information impedes product adoption, which is itself limited by lack of trust in the individual who provides the information.

Suggested Citation

  • Marcos Agurto & Habiba Djebbari & Sudipta Sarangi & Brenda Silupu & Carolina Trivelli & Javier Torres, 2020. "Local ambassadors promote mobile banking in Northern Peru," Working Papers 2020-6, Lima School of Economics.
    • Handle: RePEc:ima:wpaper:2020-006
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial inclusion; social networks; information transmission; trust;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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