Financial capabilities and perceived impact in communal banking in Chile: evidence from a user survey

Abstract

This study examines communal banking as a form of collective microfinance embedded in the sphere of the social economy, based on empirical evidence gathered through a survey administered to Banigualdad users in Puerto Montt, Chile. The research adopts an exploratory quantitative approach aimed at analyzing perceived changes in savings, income, and economic well-being, as well as the associations between participants’ trajectory in communal banking, financial capabilities, and perceived economic impact. Methodologically, the study combines descriptive analysis, the construction of synthetic indices, and nonparametric tests. The results show, on average, perceived improvements in savings, income, and economic well-being, although with heterogeneity across participants and without a linear trajectory according to time spent in the program. Likewise, moderate financial capabilities are observed, along with a positive, though weak, association between these capabilities and perceived economic impact. Overall, the evidence suggests that, in this case, communal banking is more closely associated with experiences of support, learning, and gradual economic assistance than with automatic and immediate monetary improvements. The study provides contextualized evidence for the evaluation of microfinance programs from multidimensional and cautious perspectives.