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Learning to Navigate a New Financial Technology:

Evidence from Payroll Accounts

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Emily Breza Martin Kanz Leora Klapper

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The Population

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• Globally: 69% of adults have a bank account

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• Bangladesh: 64% of men, 36% of women have a bank account.

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Large population of unbanked workers, despite stable income

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• must rely on cash for everyday transactions
• cannot easily accumulate savings
• borrow at high interest rates in informal sector
• cannot use formal credit to deal with income shocks

Access to Formal Accounts

Household Expenses: First 5 Days After Payday

• Workers only have 25% of earnings to get through 25 days of month AND save
• 38% of remaining funds used for food, 23% savings (5% total)

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