Financial Innovation and Perceptions of Existing Financial Products
Type
working paper
Date Issued
2025
Author(s)
Abstract
We study the impact of being introduced to a new financial product on attitudes towards existing financial products. We conduct a randomized controlled trial in Rwanda where participants are randomly assigned to receive a cash grant either in the form of cash or a transfer to a new financial product, a mobile-money-linked savings account, that strictly dominates both mobile money and traditional savings accounts. We find that being introduced to the new product adversely affects people's perceptions of other formal financial products. Our findings suggest that financial innovation may have an adverse effect on consumers' trust in traditional financial products.
Contact Email Address
vesa.pursiainen@gmail.com