Challenges in banking the rural poor: evidence from Kenya’s western province

Most people in rural Africa do not have bank accounts. Without a safe place to save up money, it may be very difficult for people to take advantage of high-return investments of many types. Likewise, without a safe place to keep an emergency cash buffer, vulnerability to shocks might be exacerbated. Recognising this, policymakers and international aid organisations have begun to devote attention to expanding access to financial services in developing countries, especially in rural areas where access continues to be extremely limited. However, in Dupas et al. (2012) we investigate whether increasing access is enough.