The Role of Mobile Money in Somalia’s Remittance System

2019 ◽  
pp. 119-136
Author(s):  
Mohamed Elmi ◽  
Ojelanki Ngwenyama
Keyword(s):  
Mobile Money

The Role of Mobile Money in Moderating Financial Exclusion: A Tanzanian Experience

2020 ◽  
Vol 2 ◽  
pp. 1-24 ◽  
Author(s):  
Deogratius Joseph Mhella
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Banking Sector ◽  
Research Question ◽  
Microfinance Institutions ◽  
Mobile Money ◽  
Access To Credit ◽  
Financial Exclusion

Prior to the advent of mobile money, the banking sector in most of the developing countries excluded certain segments of the population. The excluded populations were deemed as a risk to the banking sector. The banking sector did not work with cash stripped and the financially disenfranchised people. Financial exclusion persisted to incredibly higher levels. Those excluded did not have: bank accounts, savings in financial institutions, access to credit, loan and insurance services. The advent of mobile money moderated the very factors of financial exclusion that the banks failed to resolve. This paper explains how mobile money moderates the factors of financial exclusion that the banks and microfinance institutions have always failed to moderate. The paper seeks to answer the following research question: 'How has mobile money moderated the factors of financial exclusion that other financial institutions failed to resolve between 1960 and 2008? Tanzania has been chosen as a case study to show how mobile has succeeded in moderating financial exclusion in the period after 2008.

scholarly journals Determinants of private sector credit in Uganda: the role of mobile money

2016 ◽  
Vol 2 (1) ◽  
Author(s):  
Dorothy Nampewo ◽  
Grace Ainomugisha Tinyinondi ◽  
Duncan Roy Kawooya ◽  
George Wilson Ssonko
Keyword(s):  
Private Sector ◽  
Mobile Money

scholarly journals The Role of Technology in Financial Inclusion-A Case Study Mobile Money Penetration in Ghana

2021 ◽  
Vol 8 (4) ◽  
pp. 19-34
Author(s):  
Samuel Nii Attoh Abbey
Keyword(s):  
Value Added ◽  
Financial Inclusion ◽  
Mobile Money ◽  
Face To Face ◽  
Platform As A Service ◽  
The Cost ◽  
Audit Trails ◽  
Game Changer

With the flagship success of M-Pesa, mobile devices have become an important tool to facilitate the financial inclusion of the previously unbanked population in developing countries. Following the success of M-Pesa in Kenya in 2007, mobile money technologies became widespread across Africa. Beginning in 2009, Ghana experienced exceptional adoption of Mobile Money technology. Many studies have examined the influence of mobile money on financial inclusion from a variety of perspectives, and many have concluded that mobile money is a game-changer in this regard. The Mobile Money concept has evolved based on introducing the other value-added services such as microloans, savings, and insurance portfolios. The researcher used a questionnaire and a face-to-face interview to obtain qualitative data for this study. Together with other research, the statistics revealed that Mobile Money transactions in Ghana had more than tripled since it became the most popular payment method. Over the last year, the platform as a service has created over 140,000 jobs and has shown to be the safest channel. It has several advantages, including lowering the cost of printing and keeping cash on hand, as well as decreasing fraud because the technology underlying it gives appropriate audit trails to prevent fraud and boost economic growth.

Trust: mediator between mobile money adoption and usage and financial inclusion

2019 ◽  
Vol 16 (8) ◽  
pp. 1215-1237
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Ntayi
Keyword(s):  
Developing Countries ◽  
Mobile Network ◽  
Mobile Telephone ◽  
Partial Least Square ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Content Type ◽  
Mobile Money ◽  
The Relationship

Purpose Recently, a large body of research has been devoted on the role of trust in shaping different types of transactions, especially in rural financial development. Trust is a set of expectations shared by all those who engage in an exchange. Indeed, the “rule of the game” suggests that no trusting party in a transaction should act opportunistically. Consequently, this study aims to establish the mediating effect of trust in the relationship between mobile money adoption and usage and financial inclusion of MSMEs in developing countries with a specific focus on rural Uganda. Design/methodology/approach A quantitative survey-based study was used and responses obtained from 379 MSMEs located in northern Uganda were analysed using partial least square-PLS version 3.0. A semi-structured questionnaire was developed from scales and items used in previous studies referenced in internationally recognised journals to elicit responses from the MSMEs. Structural equation modelling was used to test the models to arrive at a final empirical model derived from the data. Findings The authors found evidence that trust enhances mobile money adoption and usage to increase the scope of financial inclusion of MSMEs in developing countries. Moreover, when individual effect was determined, trust also had significant and positive effect on financial inclusion. Thus, the study results imply that trust enhances mobile money adoption and usage to improve the level of financial inclusion of MSMEs in developing countries. Research limitations/implications The study used cross-sectional data to document the relationship between mobile money adoption and usage and financial inclusion and to establish the mediating effect of trust in the relationship. Future research could use relevant longitudinal data to verify other benefits of trust. Practical implications The results present trust as a significant factor for FINTECH financial services marketing and growth. Specifically, data privacy and effectiveness of the mobile telephone network is more likely to help consumers to bridge the gap between participation and non-participation on the mobile money platform. Customers’ data sent over the mobile network of providers should be protected from unnecessary access and usage by Mobile Network Operators (MNOs) staff and unauthorised persons and agents. Data protection protocols should be set by the MNOs to avoid unnecessary access and use of customers’ data. Originality/value Globally, Fintech scholars have examined the role of mobile money in promoting financial inclusion. However, there is insufficient evidence on the mediating effect of trust in the relationship between mobile money adoption and usage and financial inclusion, especially among rural MSMEs. This study invents a novel direction on the importance of trust in creating transaction efficiency by eliminating opportunism and fraud with in the Fintech ecosystem.

Mobile Money and Mobile Technologies: A Structural Estimation

2020 ◽  
Author(s):  
Yan Dong ◽  
Sining Song ◽  
Sriram Venkataraman ◽  
Yuliang Yao
Keyword(s):  
Mobile Technology ◽  
Mobile Network ◽  
Mobile Technologies ◽  
Supply Side ◽  
Social Good ◽  
Mobile Money ◽  
The Past ◽  
Market Shares ◽  
Mobile Network Operators

Mobile money is a service bundled with mobile technology and a social good that promotes financial inclusion for the under-served populations. Although the effect of mobile money has been examined in the past, we look at the supply side effects as it is important for managers to understand the role of mobile money in both providing social good and making a profit. From 1G to 4G mobile technologies, mobile money consistently serves as a competitive advantage for mobile network operators (MNOs). However, this does not mean that the effect stays unchanged over the generations of mobile technology. Instead, when the 3G technology allows web browsing as a major upgrade of mobile functionality, MNOs with mobile money have a substantially larger set of options to differentiate from those without mobile money; and as a result, mobile money implemented with 3G and 4G leads to larger market shares than that with 1G and 2G.

scholarly journals An Empirical Examination of Why Mobile Money Schemes Ignite in Some Developing Countries but Flounder in Most

2014 ◽  
Vol 13 (4) ◽  
Author(s):  
David S. Evans ◽  
Alexis Pirchio
Keyword(s):  
Developing Countries ◽  
Empirical Study ◽  
Recent Work ◽  
Critical Mass ◽  
Empirical Examination ◽  
Mobile Money ◽  
Qualitative Evidence ◽  
Successes And Failures

AbstractMobile money schemes have grown rapidly in some developing countries but failed in many more. This paper reports the results of an empirical study of mobile money schemes in 22 developing countries chosen based on prior evidence to include roughly equal numbers of successes and failures. It uses a combination of quantitative and qualitative evidence to determine why some countries succeeded in launching mobile money schemes and others failed. The analysis is guided by multi-sided platform economics and in particular recent work on the role of ignition and critical mass. It finds among other things heavy regulation, and in particular an insistence that banks play a central role in the schemes, which is generally fatal to igniting mobile money schemes.

scholarly journals The Role of Digital Consumer Protection in Mediating the Effect of Mobile Money usage towards Financial Inclusion: an Evidence from Buleleng, Indonesia

2021 ◽  
pp. 195-207
Author(s):  
Luh Regita Eka Pratiwi ◽  
Astrie Krisnawati
Keyword(s):  
Consumer Protection ◽  
Sampling Technique ◽  
Poverty Rate ◽  
Financial Inclusion ◽  
High Poverty ◽  
Mobile Money ◽  
Current Utilization ◽  
High Poverty Rate ◽  
Process Method

The current utilization of digital services especially in finance sector among the productive age communities is increasing. Mobile money utilization and the implementation of a digitalization system in the financial sector are expected to increase financial inclusion. By increasing financial inclusion, the poverty rate is also expected to be reduced. Buleleng Regency is one of regency in Bali Province, Indonesia which has a high poverty rate. It is necessary to increase financial inclusion through mobile money usage. However, it is also necessary to increase consumer protection to support this digitalization. This research aims to determine the effect of mobile money usage on financial inclusion with digital consumer protection as a mediator in productive age communities in Buleleng Regency, Bali, Indonesia. The population of this research consists of 439,400 people from productive age group in Buleleng Regency, Bali, Indonesia. This research used a non-probability sampling technique with the total of 477 samples. This research applies the Sobel test, Baron and Kenny’s mediation analysis, and the PROCESS method by Hayes. The results of this study show that digital consumer protection partially mediates the effect of the mobile money usage on financial inclusion in Buleleng Regency, Bali, Indonesia. Based on the results of this study, it is suggested to regulators and related agencies in Indonesia to show more attention about the safety factors of mobile money users by strengthening consumer protection in terms of both regulation and the system reliability. Furthermore, it is also necessary to develop education programs on how to manage finance properly by using mobile money in order to improve people’s welfare.

Assessing customer intention use of mobile money application and the antecedent of perceived value, economic trust and service trust

2020 ◽  
Vol 16 (3) ◽  
pp. 331-345
Author(s):  
Taqwa Hariguna ◽  
Ade Maharini Adiandari ◽  
Athapol Ruangkanjanases
Keyword(s):  
Structural Equation ◽  
Online Survey ◽  
Service Providers ◽  
Personal Information ◽  
Perceived Value ◽  
Equation Model ◽  
Two Dimensions ◽  
Content Type ◽  
Mobile Money

Purpose The purpose of this study is to examine the role of trust and perceived value (PV) in customer intentions to adopt mobile money application (MMA) services. Trust and PV were broken down into various dimensions. This study investigated the two-component base trusts, namely, economic and service, and also PV as an antecedent. Design/methodology/approach This study involved 402 respondents selected through the interception and online survey approach and had five hypotheses. The structural equation model was used to test the hypothesis of this study. Findings The findings showed that the PV was related to the customer’s intention to use MMA services and economy-based trust. Trust in service providers and economic-based trust were positively related to customer intentions to use MMA services. Research limitations/implications Although the concept of MMA has been explored in several literatures, the role of trust and PV in the use of MMA has not been of much concern among researchers. In addition, this study described PV as a construction with five supporting dimensions. The current literature showed that the integration of PV with construct trust was still lacking in attention from researchers especially the study of MMA. Practical implications For practitioners, these findings confirmed that MMA service providers need to convince customers of protection to money and personal information. Also, providers need to ensure that the use of MMA provides cost and time effectiveness. Besides, it is important to ensure the services provided to customers are the fastest way to carry out financial transactions, in this case, including payment and retail purchases. This finding also showed that PV related to MMA services needs to be studied from a customer perspective, focusing on four aspects of ethics, playfulness, customer return of investment and excellent service. Therefore, handling PV in these services requires specific strategies to deal with these various aspects. Originality/value This study integrated two dimensions of trust, thus economic trust and service trust, the authors also integrated dimension of PV as the antecedent of two dimensions of trust, to understand the dimension of intention use MMA.

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