Study Overview
Despite the importance of deposit financing for lending, banks in developing countries struggle to attract deposits.
Study Results
In a randomized experiment across 110 bank branches throughout Mexico, a lottery incentive based on net monthly deposits caused a 40% increase in the number of accounts opened and a 21% increase in the number of deposits during the lottery months. Nearly all new accounts (96%) were opened by households previously unbanked at any bank. The temporary two-month incentive had a persistent 2-3 year impact on the flow of deposits and stock of savings, and increased the present value of branch profits by 6%.
Intervention: Financial incentive
News & media
Using lotteries to attract deposits: Evidence from Mexican banks
October 17, 2023
Lottery incentives attract unbanked households to open bank accounts and save in these accounts. Moreover, even a short-term lottery incentive (two months in the case of our experiment) can cause a persistent increase in the flow of deposits and the stock of savings.