‘Upliftment’, friends and finance: everyday exchange repertoires and mobile money transfer in Kenya

2018 ◽  
Vol 56 (4) ◽  
pp. 569-594 ◽  
Author(s):  
Susan Johnson ◽  
Froukje Krijtenburg
Keyword(s):  
East Africa ◽  
Low Income ◽  
Financial Inclusion ◽  
Financial Systems ◽  
Resource Exchange ◽  
Mobile Money ◽  
Depth Analysis ◽  
Money Transfer ◽  
New Perspective ◽  
Analytical Approaches

AbstractThe rapid and massive adoption of mobile money transfer (MMT) services in East Africa, particularly in Kenya, stands in stark contrast to historically low use of formal financial systems on the continent. Its ‘fertile grounds’ therefore require in-depth analysis to understand the implications for African financial systems. This paper argues for the need to examine the underlying conceptual environment that enables low income and poor people's MMT adoption. It innovatively combines anthropological with ethnolinguistic analytical approaches to distinguish two repertoires around resource exchange. First, is a relational financial repertoire where relationships are developed and consolidated to create support and ‘upliftment’. A contrasting resource-focused repertoire is more like that of the formal financial sector. Identifying the conceptual features of relationality, the study offers a new perspective on the adoption and use of MMT in Africa and highlights the potential for disjunctures with policy efforts to increase financial inclusion.

scholarly journals The Nexus between Mobile Money Regulation, Innovative Technology and the Promotion of Financial Inclusion in Zimbabwe

2021 ◽  
Vol 24 ◽  
pp. 1-33
Author(s):  
Howard Chitimira ◽  
Elfas Torerai
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Banking Sector ◽  
Regulatory Framework ◽  
Financial Inclusion ◽  
Innovative Technology ◽  
Technological Innovations ◽  
Mobile Money ◽  
The Poor

The advent of mobile money innovations has given people in rural areas, informal settlements and other poor communities an opportunity to participate in Zimbabwe's mainstream financial economy. However, the technology-driven money services have presented some challenges to the traditional banking sector in general and the regulation of financial services in particular. Firstly, most mobile money services are products of telecommunication corporations, which are not banks. Telecommunication companies use their network reach to provide mobile money services via mobile devices at a cheaper cost than banks across the country in Zimbabwe. As such, banks face unprecedented competition from telecommunications companies that are venturing into financial services. It also appears that prudential regulation of banks cannot keep up with the fast pace at which technological innovations are developing and this has created a disjuncture between the regulation and the use of technological innovations to promote financial inclusion in Zimbabwe. The Banking Act [Chapter 24:20] 9 of 1999, the Reserve Bank of Zimbabwe Act [Chapter 22:15] 5 of 1999 and the National Payment Systems Act [Chapter 24:23] 21 of 2001 have a limited scope in terms of the regulation of mobile money services in Zimbabwe. The Ministry of Finance and Economic Development launched the National Financial Inclusion Strategy (NFIS) 2016-2020 to provide impetus to the financial inclusion of the poor, unbanked and low-income earners in Zimbabwe. However, the NFIS appears to push more for bank-led financial inclusion than it does for innovation-driven initiatives such as mobile money services. This article highlights the positive influence of mobile money services in improving financial inclusion for the poor, unbanked and low-income earners in Zimbabwe. The article also seeks to point out gaps and flaws in the financial services regulatory framework that may limit the potential of mobile money services to reach more people so that they actively participate in the Zimbabwean economy. It is submitted that the Zimbabwean mobile money services regulations and the financial regulatory framework should be carefully amended in line with the recent innovations in mobile money to adequately regulate the use of mobile money services and innovative technology to address the financial exclusion of the poor, unbanked and low-income earners in Zimbabwe.

Visualization-Driven Approach to Fraud Detection in the Mobile Money Transfer Services

2019 ◽  
pp. 205-236
Author(s):  
Evgenia Novikova ◽  
Igor Kotenko
Keyword(s):  
Financial Institutions ◽  
Efficiency Evaluation ◽  
Financial Systems ◽  
Mobile Money ◽  
Detection Techniques ◽  
Money Transfer ◽  
Fraudulent Activity ◽  
Transfer Services ◽  
Changes Over Time ◽  
Over Time

Mobile money transfer services (MMTS) are widely spread in the countries lacking conventional financial institutions. Like traditional financial systems they can be used to implement financial frauds. The chapter presents a novel visualization-driven approach to detection of the fraudulent activity in the MMTS. It consists in usage of a set of interactive visualization models supported by outlier detection techniques allowing to construct comprehensive view on the MMTS subscriber behavior according to his/her transaction activity. The key element of the approach is the RadViz visualization that helps to identify groups with similar behavior and outliers. The scatter plot visualization of the time intervals with transaction activity supported by the heat map visualization of the historical activity of the MMTS subscriber is used to conduct analysis of how the MMTS users' transaction activity changes over time and detect sudden changes in it. The results of the efficiency evaluation of the developed visualization-driven approach are discussed.

Impact of Mobile Payment Applications and Transfers on Business

2020 ◽  
pp. 173-189
Author(s):  
Gladys Wanjiku Thuita
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Financial Inclusion ◽  
Mobile Banking ◽  
Business Growth ◽  
Sustainable Business ◽  
Income Levels ◽  
Mobile Money ◽  
Slum Dwellers ◽  
And Training

Despite Kenya having over 40 banks, only three banks are accessible to the residents of Kibera Slum. Kibera Slum is located on the outskirts of Nairobi and is home to approximately 0.75 million people. A majority of the population in Kibera Slum comprises of either unemployed or casually employed adults whose income levels are considerably low, making it impossible for many of them to operate formal bank accounts. However, the evolution of mobile money technologies has made financial inclusion and innovation possible for Kibera Slum residents. The mobile-banking facility known as M-Pesa enables mobile money remittances and has an outstanding record of financial inclusion and innovation. The objective of this research was therefore to examine financial inclusion and innovation in the Kibera Slum. The study used self-administered questionnaires to answer to two objectives. The study found out that M-Pesa services are accessible and widely used in Kibera Slum. The study also found that M-Pesa business is rated average as a source of income to M-Pesa agent. Ultimately, the study observed that financial inclusion and financial innovation are prevalent in Kibera Slum. These findings have significant implications: the study sheds light on the fact that the slum dwellers have embraced the use of M-Pesa services as a platform to access financial services, establishing more innovative financial services that will help the low income earners expand their businesses and training M-Pesa agents will enhance sustainable business growth and promote innovation.

Mobile Money Transfer

2020 ◽  
pp. 1-15
Author(s):  
Martin Kang'ethe Gachukia
Keyword(s):  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Economic Policies ◽  
African Countries ◽  
Middle Income ◽  
The Sustainable Development ◽  
Mobile Money ◽  
International Remittances ◽  
Money Transfer ◽  
Sub Saharan

The chapter reviews the growth of mobile money transactions (MMTs) and their effect on international remittances and financial inclusion. The novelty of MMTs is its widening adaptation beyond Sub-Saharan Africa with increased confidence in use of MMTs by international humanitarian agencies and governments in reaching out to citizenry through government-to-people (G2P) as well as people-to-government (P2G) payment platforms. The chapter is conceptualized on the emergent themes emanating from the World Bank data under the G20 financial inclusion indicators in 60 countries with remarkable MMTs per 100,000 adults. Emergent findings from the data indicates of MMT benefits to small countries such as the Pacific Island countries, benign economic policies under West African countries, increased uptake of cash and voucher transfers through humanitarian support, and the pursuit of cashless economy through mobile wallets. In essence, the growth of MMTs is currently viewed as leap-frog strategy to the low- and middle-income countries embracing MMTs in promoting the sustainable development goals.

Mobile Money Landscape in the 12 SADC Countries using FinScope Survey Data

GIS Business ◽  
2017 ◽  
Vol 12 (3) ◽  
pp. 25-32
Author(s):  
Kingstone Mutsonziwa
Keyword(s):  
Mobile Applications ◽  
Financial Services ◽  
Financial Inclusion ◽  
Poor People ◽  
Main Stream ◽  
Mobile Money ◽  
The World Bank ◽  
Mobile Financial Services ◽  
Money Transfer ◽  
Game Changer

There is no doubt that mobile money is bringing the under-served and the excluded population into the main stream financial services corridors. Based on the FinScope surveys, mobile money is becoming one of the enablers of financial inclusion. In an increasing number of developing countries, a number of poor people are using basic mobile phones to transfer money, paying for goods and accessing some basic financial services. According to the World Bank, mobile financial services are amongst the most promising mobile applications in the developing world. Although FinScope results show that mobile money usage is relatively low (23%) in the SADC region, the trend of usage is coming up fast. FinScope results show that close to 7 in 10 mobile money users are using it as a remittances/money transfer vehicle while 54% for buying airtime. It is encouraging that about 7 million adults (24% of mobile money) store value or save money in their mobile money accounts. Some barriers to mobile money relate to: affordability, perceived cost of mobile money, lack of understanding of mobile money/lack of awareness and no access to cell phones. Besides these barriers, mobile money is becoming a game changer for the landscape of financial inclusion in the SADC region.

Ethics in Mobile Banking

2021 ◽  
pp. 398-415
Author(s):  
Rehema Kagendo Kiarie
Keyword(s):  
Informal Sector ◽  
Ethical Issues ◽  
Financial Inclusion ◽  
Mobile Banking ◽  
Ethical Challenges ◽  
Unethical Conduct ◽  
Mobile Money ◽  
Convenient Means ◽  
Money Transfer ◽  
Formal And Informal Sectors

This chapter addresses the ethical issues relating to mobile money transfer in Kenya. The mobile money transfer industry has grown exponentially in Kenya. Both the formal and informal sectors have embraced the use of mobile money transfer as a convenient means of transacting. With a plethora of advantages, most notably financial inclusion of the informal sector, mobile money transfer also has its ethical demerits. Despite the ethical challenges being experienced, the use of regulation coupled with education of users on ethical issues and security of mobile money transactions will assist in reducing unethical conduct.

Ethics in Mobile Banking

2020 ◽  
pp. 190-212
Author(s):  
Rehema Kagendo Kiarie
Keyword(s):  
Informal Sector ◽  
Ethical Issues ◽  
Financial Inclusion ◽  
Mobile Banking ◽  
Ethical Challenges ◽  
Unethical Conduct ◽  
Mobile Money ◽  
Convenient Means ◽  
Money Transfer ◽  
Formal And Informal Sectors

This chapter addresses the ethical issues relating to mobile money transfer in Kenya. The mobile money transfer industry has grown exponentially in Kenya. Both the formal and informal sectors have embraced the use of mobile money transfer as a convenient means of transacting. With a plethora of advantages, most notably financial inclusion of the informal sector, mobile money transfer also has its ethical demerits. Despite the ethical challenges being experienced, the use of regulation coupled with education of users on ethical issues and security of mobile money transactions will assist in reducing unethical conduct.

scholarly journals Mobile Money, the Symbolism of Physical Money and Emerging Dynamics in Social Relationships among Low-Income Earners in Kenya

2017 ◽  
Vol 12 (4) ◽  
pp. 178
Author(s):  
Kennedy Munyua Waweru
Keyword(s):  
Focus Groups ◽  
Social Relationships ◽  
Low Income ◽  
Developing World ◽  
Purchasing Power ◽  
Mobile Money ◽  
Financial Transaction ◽  
Credit Associations ◽  
Money Transfer ◽  
Financial Transactions

Kenya which is considered a leader of digitization of money in the form of mobile money in the developing world has been compared in some studies with Sweden, world leader in digitization of financial transaction among its residents. Despite the progress in digitization of financial transactions witnessed in many countries, opinion is still divided on whether full digitization of financial transactions is feasible. This study examines the symbolism of the physical money among low-income earners in Kenya a key variable to be considered in any move towards full digitization of financial transactions. The study surveyed 750 low-income households across Kenya and conducted focus groups. Findings indicate that Kenyans consider physical money as symbol of purchasing power that is irreplaceable by mobile money. They view mobile money as a complementary financial transactions facilitator especially for money transfer and not a replacement of cash. Findings also suggest that the advent of mobile money is be associated some increase in the degree of disconnection in personal interactions in social relationships. It also emerged that mobile money has facilitated continuity of rotating saving and credit associations in cases of mobility resulting from employments or other factors.

scholarly journals Mobile money operations, financial inclusion and Socioeconomic factors in the Niger-Delta Region of Nigeria

2021 ◽  
Vol 10 (5) ◽  
pp. 224-234
Author(s):  
Nenubari John Ikue ◽  
John Sodipo ◽  
Samuel Zeb-Omoni ◽  
Onyinyechi Uche ◽  
Linus Enegesi ◽  
...  
Keyword(s):  
Citizen Participation ◽  
Low Income ◽  
Rural Areas ◽  
Niger Delta ◽  
Financial System ◽  
Financial Inclusion ◽  
Financial Instruments ◽  
Delta Region ◽  
Mobile Money ◽  
Niger Delta Region

The improvement in the standard of living of citizenry is beyond lack of money but the poverty to access financial instruments and means to financial platforms. Such that lack of access to financial instruments and services is a major veritable channel for poverty amplification in the society. This paper examines the relationship between Mobile Money Operations (MMOs) and Financial Inclusion in the Niger Delta region of Nigeria. The paper also analysis the trends of the instruments of financial inclusion and MMOs in Nigeria from 2012 to 2019. The primary and secondary were data sourced and analyzed with the Net Balance Methods, Instruments of inferential and descriptive statistics. The survey results show a visual cycle of higher number of respondents with secondary school qualifications and less which have led to low income and an ineffective participation to mobile money and financial inclusions in the rural areas. We equally observed that poor internet and mobile networks, epileptic power supply, unclear economic policies among others are major setback for the insignificant relationship between MMOs and financial inclusion in the Niger Delta region. This implies that the growth of mobile banking and financial inclusions to facilitate financial system soundness and enhances economic growth and development required more motivations from institutions other than the financial institutions; as a ways of encouraging increased Nigerians participation. Base on the result the paper can assumes that the financial system has provided the needed instrument for citizen participation but the social and economic conditions of the country is the bottleneck for financial inclusions.

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