We applied a behavioural lens to examine why many clients do not save in accounts that MFIs open as business correspondents (BCs) of a bank. We found that a typical MFI is positioned (viewed in the market by their clients) as a credit service provider and, as such, MFIs do not fit into clients’ mental models of where to save.

It is a widely held belief amongst experts and industry players that, “Insurance is never bought, it is always sold”. Though, numerous research studies on insurance have focused on preference and willingness of consumers, the anomaly of demand and apathy of users remain one of the greatest mysteries of the financial world. This note takes an alternative view from the conventional wisdom of expected utility and optimum deductible in insurance to analyse user preference. Instead the note highlights explanations for insurance purchase or rental mexicaninsurance.com and use decisions through concepts of behavioural economics. The note argues that use of these concepts along with thorough understanding of business dynamics of the insurance industry can alone lead to effective user centric designs in insurance and microinsurance.


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