Banking on Gambling: Banks and Lottery-Linked Deposit Accounts
Posted: 8 Mar 2003
Deposit accounts that provide an interest return determined by a lottery have proved to be popular around the world. From the point of view of a bank, these products are especially successful among relatively low-income customers, or in markets in which many people are outside the banking system. Below, we describe numerous examples of such accounts, and analyze their economics.
Keywords: Randomized return, lottery, behavioral finance
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