Some firms comprehend the enormous potential that exists for providing services to the growing low income segment. Operating in the low-income market has numerous complications, such as designing an efficient distribution and servicing system, offering simple and “easy to consume” products,...

This paper studies the adoption and impact of prize-linked savings (PLS) accounts, which offer random, lottery-like payouts to individual account holders in lieu of interest. Using micro-level data from a bank offering these products in South Africa, we show that a PLS product was attractive to...

We report on the potential American demand for prize-linked savings, a savings account that also awards prizes. Our survey data suggests significant interest among individuals with little actual savings, without regular saving habits, who play lotteries extensively, and are optimistic.

We analyze a national sample of Americans with respect to their debt literacy, financial experiences, and their judgments about the extent of their indebtedness. Debt literacy is measured by questions testing knowledge of fundamental concepts related to debt and by self-assessed financial...

Objective We examine how the economic crisis has affected individuals’ use of routine medical care and assess the extent to which the impact varies depending on national context. Methods Data from a new cross‐national survey fielded in the United States, Great Britain, Canada, France, and...

Although financial innovation has been an important part of the financial landscape throughout modern economic history, it has received relatively little attention in academia. This essay surveys the existing literature on financial innovation from the disciplines of financial economics,...

Many investors purchase mutual funds through intermediated channels, paying brokers or financial advisors for fund selection and advice. This article attempts to quantify the benefits that investors enjoy in exchange for the costs of these services. We study broker-sold and direct-sold funds...

The article reports on a study of U.S. consumers which found that the majority of respondents did not understand the concepts relating to compound interest, credit card fees, and debt. The study on debt literacy was conducted by the authors and the marketing research company TNS. The authors...