The Role of Financial Services in Building Household Resilience in Burkina Faso

The primary theory of change for the microfinance industry has historically been one in which access to and use of formal financial services reduces household poverty. Newer theories of change suggest that the use of financial services for poor households results in resiliency. In effect, financial services help households anticipate, adapt to, and/or recover from the effects of shocks in a manner that protects their livelihoods, reduces chronic vulnerability, and facilitates growth. This research yields further recommendations for designing products and services aimed at improving resiliency.