scholarly journals The Role of Trust in Mediating the Effect of Mobile Money Usage towards Financial Inclusion: Evidence from Gunungkidul, Indonesia

2021 ◽  
Vol 9 (10) ◽  
Author(s):  
Elizabeth Fiesta Clara Shinta Budiyono ◽  
Astrie Krisnawati
Keyword(s):  
Financial Inclusion ◽  
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.

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.

The Reality of Mobile Payment Systems and Social Inclusion in Latin America

2020 ◽  
pp. 901-923
Author(s):  
Myriam Martínez-Fiestas ◽  
Katia Oviedo-Cáceres ◽  
Ignacio Rodriguez-Garzon
Keyword(s):  
Latin America ◽  
Social Inclusion ◽  
Business Models ◽  
Financial Inclusion ◽  
Mobile Payment ◽  
Payment Systems ◽  
Mobile Money ◽  
The Social ◽  
Social Disparity

This chapter describes the role of mobile payment systems in Latin America as a means leading ultimately to social inclusion and financial inclusion. Specifically, the first section will discuss the social disparity in Latin America and the existence of financial and social exclusion. The second section will analyze Latin America's mobile payment systems, the region's current panorama of mobile money, the general trends that characterize money and the business models used for mobile money.The third section will review mobile money as a mechanism of financial inclusion and its role in reducing poverty in Latin America. This section will also analyze the barriers to financial inclusion.The fourth section will focus on the risks of mobile payment systems such as money laundering and terrorism funding.The chapter will conclude by comparing the similarities and differences of mobile payment systems that contribute to social inclusion implemented in Brazil, Colombia, Mexico, Paraguay and Argentina.

Mobile Money and Financial Inclusion in Sub-Saharan Africa: the Moderating Role of Social Networks

2018 ◽  
Vol 19 (3) ◽  
pp. 361-384 ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph M Ntayi ◽  
John C. Munene ◽  
Charles Akol Malinga
Keyword(s):  
Social Networks ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Mobile Money ◽  
Sub Saharan ◽  
Moderating Role

The Reality of Mobile Payment Systems and Social Inclusion in Latin America

2016 ◽  
pp. 94-116
Author(s):  
Myriam Martínez-Fiestas ◽  
Katia Oviedo-Cáceres ◽  
Ignacio Rodriguez-Garzon
Keyword(s):  
Latin America ◽  
Social Inclusion ◽  
Business Models ◽  
Financial Inclusion ◽  
Mobile Payment ◽  
Payment Systems ◽  
Mobile Money ◽  
The Social ◽  
Social Disparity

This chapter describes the role of mobile payment systems in Latin America as a means leading ultimately to social inclusion and financial inclusion. Specifically, the first section will discuss the social disparity in Latin America and the existence of financial and social exclusion. The second section will analyze Latin America's mobile payment systems, the region's current panorama of mobile money, the general trends that characterize money and the business models used for mobile money.The third section will review mobile money as a mechanism of financial inclusion and its role in reducing poverty in Latin America. This section will also analyze the barriers to financial inclusion.The fourth section will focus on the risks of mobile payment systems such as money laundering and terrorism funding.The chapter will conclude by comparing the similarities and differences of mobile payment systems that contribute to social inclusion implemented in Brazil, Colombia, Mexico, Paraguay and Argentina.

Financial Innovation and Financial Inclusion

2021 ◽  
pp. 92-118
Author(s):  
Bob Collymore
Keyword(s):  
Consumer Protection ◽  
Financial Innovation ◽  
Chief Executive ◽  
Financial Inclusion ◽  
Money Growth ◽  
Mobile Money ◽  
Untimely Death ◽  
Current State ◽  
Proactive Measures

This chapter was written before the untimely death of Bob Collymore, Chief Executive Officer of Safaricom (the Kenyan telecommunications company). In many ways, the chapter offers testimony to his great ideas and legacy in innovation of mobile money that revolutionized the financial sector. The chapter narrates the journey of M-PESA from inception to its current state, the partnerships formed along the journey and supporting regulations thereof. The chapter also features the role of mobile money as a tool for financial inclusion and deepening. It is shown that the enabling policy and regulatory environment were critical for mobile money development in Kenya. It is also suggested that regulation should be market-led and proactive measures should be undertaken to enhance not only mobile money growth but also consumer protection.

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