IPA is working with Mumuadu Rural Bank (MRB) to study the response to and impact of a new account labeling savings product. Working with Susu customers and Susu agents, the study compares the success of this new product with the current Susu savings product. The new savings product has only a psychological difference: it allows the labeling of funds within an account so that deposits can be directed to a specific goal, such as health, education or business savings.

In addition to the labeled accounts, a random selection of customers receives six 15-minute financial literacy lessons. IPA is looking at how financial literacy education impacts the decision to open a labeled savings account, and which combination of account type and education results in highest take-up as well as larger and more frequent deposits. Analysis will also determine the effect on customers’ consumption patterns in relation to the label.

4,500 active and 2,000 inactive Susu customers are randomly assigned to either one of five labeled savings accounts (treatment) or the control group. Of these labeled savings accounts, one is labeled for education, one for business and another for household goods. The fourth account allows customers to choose which label of the previous three to use, and with the fifth account, clients choose their own label. All customers are randomly assigned to receive financial education or not.