Biblioteca

This study examines the effect of offering beneficiaries of conditional cash transfers in Chile the option to receive their transfers in bank accounts rather than in cash. Specifically, the article investigates how this option affects savings and transaction behavior for 33 months. It finds positive but temporary impacts on bank balances, up to 12 months after the offering, amounting to 0.7 percent of their annual income. It also finds an increase in transactional usage, suggesting greater financial inclusion when the account is used as a payment account rather than merely as a pass-through vehicle. Beneficiaries gradually increase their deposit frequency over time, for up to 24 months after the offering, consistent with increased financial inclusion, though this does not translate into sustained balance growth in the long run.