Connecting the Disconnected

Connecting the Disconnected presents the findings of the field research designed to evaluate financial practices and strategies among urban and rural Bhutanese households. The study was commissioned in 2012 by the Royal Monetary Authority of Bhutan and the World Bank to provide qualitative evidence to the country's Financial Inclusion Policy. The book explores where, how, and why diff erent demographic groups save, borrow, send remittances, and insure themselves; it also evaluates the potential for innovations to extend fi nancial inclusion. Analysis of results from focus group discussions and in-depth interviews reveals three key patterns: Bhutan is a cash-based economy where households have a vibrant, if informal, savings and lending culture; rural areas are particularly underserved by formal fi nancial services; and women and youth represent an untapped market segment...