FAI is seeking a Director to contribute to the long-term vision and management of the initiative, which is based at the NYU Wagner School of Public Service. Candidates must have a keen interest in research as it relates to financial inclusion, and should be proactive, problem-solvers, self-starters, and be able to juggle many responsibilities.  

Interested candidates can apply here, under Job Posting Number: 20092883.

The Spanish translation of The Economics of Microfinance (Economia de las Microfinanzas) by Beatriz Armendáriz and Jonathan Morduch is available now via El Fondo de Cultura Economica in Mexico City. This comprehensive survey of microfinance seeks to bridge the gap in the existing literature on microfinance between academic economists and practitioners. The authors move beyond the usual theoretical focus in the microfinance literature and draw on new developments in theories of contracts and incentives. They challenge conventional assumptions about how poor households save and build assets and how institutions can overcome market failures.

"The single best book on the economics of banking and finance, period, and certainly the most encompassing book I have read on microfinance. My copy is covered in notes and dog-eared from use."
—Thomas Easton, New York Bureau Chief, The Economist

"The microfinance movement is bringing hope, prosperity, and progress to many of the poorest people in the world. It is necessary to use critical economic reasoning to understand why the movement is such a success and how its exact achievements can be assessed and scrutinized. This book is a splendid contribution to that goal, and will be a great help to students, teachers, and practitioners in economics and the social sciences."
—Amartya Sen, Lamont University Professor, Harvard University, Nobel Laureate in Economics (1998)

"A great place to learn how and why microfinance really works, and where it hits its limits. The book, written by two leading young economists, brims with new evidence and provides fresh perspectives on old debates. Clearly written and sharply argued, it revisits and transforms important ideas about poverty reduction, finance, and incentives. The authors describe what we know and what we need to know in order to move forward."
—Joseph E. Stiglitz, Professor of Economics and Finance, Columbia University, Nobel Laureate in Economics (2001)

The Microfinance Gateway discovers "5 Things You Didn't Know About Microfinance in the US." Point #4 in the article references the forthcoming work of the U.S. Financial Diaries team in understanding how families in low-income communities across the U.S. are making ends meet. Here's an excerpt:

As with microfinance clients in other parts of the world, commonly cited reasons for being unbanked are insufficient funds to open an account, banks feel unwelcoming or they do not trust banks, lack of documentation, and a poor credit history or no history.

Despite the large number of CDFIs operating in the US, many remain small or offer only a limited number of services to their customers (i.e. loans to microenterprises but not individual savings accounts). As a result, underbanked households often turn to AFS providers to manage their financial needs. These services can be expensive and are not covered by deposit insurance, but are very popular and represent $320 billion in annual transactions.

A financial diaries project is underway in the US using the same methodology behind Portfolios of the Poor. The partnership between Bankable Frontier Associates, Center for Financial Services Innovation, and Financial Access Initiative aims to better understand how low-income Americans manage their financial lives.

The low-income consumer has been an elusive market for financial institutions. Despite all the initiatives to lure them into the banking mainstream-prepaid debit cards, peer-to-peer lending groups, savings accounts with matching funds-more than two-thirds of Americans making less than $30,000 remain unbanked

Starting this November, a group of researchers will begin the U.S. Financial Diaries, a new project that will track the financial behavior of 300 families in four American cities through biweekly interviews conducted over the course of 15 months.

FAI announces the launch of an important new study to better understand the financial lives of low-income Americans. The first detailed financial study of its kind in the U.S. will help financial institutions, government, and nonprofits develop solutions to better meet the needs of low-income Americans. The will be conducted in partnership with the Center for Financial Services Innovation (CFSI) and Bankable Frontier Associates (BFA) and is funded by the Citi and Ford Foundations. More information is available here.

The Wall Street Journal reviews Dean Karlan and Jacob Appel's new book “More Than Good Intentions: How a New Economics Is Helping to Solve Global Poverty,” while also citing "Portfolios of the Poor." The article highlights how accurate information and a clear understanding of the financial lives of the poor are necessary to drive anti-poverty efforts. Read the article here.