The Caja Nacional del Sureste (CNS) is working with IPA to test a new savings product aimed at increasing formal savings of remittances. This product is a labeled savings account, called “Secure Future,” and provides remittance receivers the opportunity to set aside funds for future or emergency needs.

When remittance receivers open a labeled savings account, they declare their savings goal and an amount of their remittance to be deposited at every remittance transaction. This self-commitment to save an amount at each transaction is not binding; however, the teller reminds clients of their savings goals and pre-committed savings amount each time they receive a remittance.

Remittance clients are randomly assigned to two groups for the course of the study: one will receive an offer to open the Secure Future savings account (treatment) and the other will not (control group). Savings levels at CNS are tracked to determine whether this account encourages remittance clients to increase their overall use of formal savings services. The product is implemented in four branches in southern Oaxaca.