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.

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.

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.

Policy Responses to Tropical Deforestation: Are Debt-for-Nature Swaps Appropriate?

1993 ◽  
Vol 2 (2) ◽  
pp. 41-65 ◽  
Author(s):  
Moritz Kraemer ◽  
Jörg Hartmann
Keyword(s):  
Developing Countries ◽  
Debt Crisis ◽  
Policy Instruments ◽  
Tropical Deforestation ◽  
Empirical Examination ◽  
Policy Responses ◽  
Country Study ◽  
Cross Country ◽  
Conservation Projects

This paper examines passible causes for the acceleration of tropical deforestation and the role of a popular instrument to reverse this trend, debt-for-nature swamps (DNS). This instrument builds on the contention that the debt crisis of developing countries has created the need to exploit natural resources, such as tropical forest areas. Thus, DNS could potentially protect forests directly (through conservation projects) and indirectly (by reducing debt-induced pressure on the forests). First, an instrumental critique of DNS is given, followed by an empirical examination of the debt-deforestation link that stands behind the instrument of DNS. Neither this nor other plausible causes of the acceleration of deforestation can be identified as significant in a cross-country study. The paper concludes that appropriate policy instruments must be based on case-specific research.

scholarly journals The Role Of Mobile Money In Moderating Financial Exclusion: A Tanzanian Experience

2020 ◽  
Vol 9 (2) ◽  
pp. 83-104
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 financially disenfranchised people. Financial exclusion persisted to incredibly higher levels. Those excluded did not have bank accounts, savings in financial institutions, access to credit, loans, 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.

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