Mobile Financial Services in Emerging Countries

2018 ◽  
pp. 109-128 ◽  
Author(s):  
Joseph Kwame Adjei ◽  
Solomon Odei-Appiah
Keyword(s):  
Developing Countries ◽  
Technology Adoption ◽  
Financial Institutions ◽  
Financial Services ◽  
Emerging Countries ◽  
Major Barrier ◽  
Regulatory Issues ◽  
Bus Driver ◽  
Mobile Financial Services ◽  
Financial Transactions

This chapter describes a recent World Bank report which indicated a sizable percentage of households in developing countries do not have access to formal accounts with financial institutions. The situation has created a major barrier in the quest for a world without poverty due to the exclusion of segments of society from the formal financial system. The phenomenon has resulted in the exclusion of many from traditional financial services, thus the use of other means to conduct informal financial transactions. In Ghana, many households rely on domestic informal forms of remittance to relatives and payments. Such informal mediums of remitting money to and from relatives in Ghana (e.g. via “Bus Driver”) received wide patronage irrespective of the associated risks until mobile financial services were introduced. This chapter discussed Mobile Financial Services (MFS) from the perspective of emerging economy and treats the following topics; technology, adoption and the regulatory issues in MFS.

Prospects and Challenges of Mobile Financial Services (MFS) in Bangladesh

2022 ◽  
pp. 320-341
Author(s):  
Dhanonjoy Kumar
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Crucial Role ◽  
Development Strategies ◽  
Mobile Banking ◽  
Payment Systems ◽  
Automatic Teller Machine ◽  
Mobile Financial Services ◽  
Online Business ◽  
Financial Transactions

Microelectronic payment systems are speedily replacing the ordinary modes of payment. Electronic payment systems require online financial transactions that utilize some digital financial devices. They have allowed government, businesses, and financial institutions to propose a multiple of payment opportunities to their customers. These payment opportunities include charge account credit, master card, mobile banking, and automatic teller machine and payments bills through the mobile. Mobile financial services (MFS) performed a crucial role within the present online business and other business and financial services performed within the busy and pandemic world. The study is empirical in nature of MFS and its implications in Bangladesh. Finally, the study presents an overview of challenges and prospects of MFS in Bangladesh, focusing on some development strategies for policy holders. Researchers propose how MFS operators solve the MFS-related problems, overcome the challenges, satisfy the customers, and increase their service.

Mobile investment technology adoption among investors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lu Fan
Keyword(s):  
Technology Adoption ◽  
Financial Services ◽  
Diffusion Of Innovations ◽  
Mobile Apps ◽  
Investment Decision ◽  
Risk Tolerance ◽  
Content Type ◽  
Investment Decision Making ◽  
Mobile Financial Services ◽  
Money Transfers

PurposeThe purpose of this study is to examine investors' internal characteristics, including investment literacy, risk tolerance and familiarity with mobile financial services, as antecedents of mobile investment technology adoption among American investors.Design/methodology/approachUsing the 2018 National Financial Capability Study and its supplemental Investor Survey, this study examined antecedents, including investors' internal characteristics, in relation to mobile investment technology adoption. Nested logistic regression analyses were performed for adopting mobile apps for investment decisions and for investment trading.FindingsThis study found that objective and subjective investment knowledge, experience using mobile banking for payments and money transfers, and certain ownerships of investment vehicles (such as whole-life insurance policies and ETFs) were significant determinants of mobile investment decision-making. On the other hand, subjective investment literacy, risk tolerance, familiarity with mobile financial services, and portfolio value, as well as certain types of investment vehicles were significantly associated with mobile investment trading.Originality/valueThis study is among the first to examine investors' investment literacy, risk tolerance and familiarity with mobile financial services as investors' internal characteristics in relation to mobile investment technology adoption. The diffusion of innovations theory and related concepts provide theoretical support for this study. The findings provide new insights into mobile investing as an emerging FinTech subject and provide implications for practitioners and FinTech developers, as well as contribute to the literature of mobile investment service adoption among retail investors.

Examining Factors Influencing Customers Satisfaction with Mobile Financial Services in Tanzania

2020 ◽  
Vol 3 (2) ◽  
pp. 17-29
Author(s):  
Christine Msafiri ◽  
Evod Rimisho
Keyword(s):  
Financial Services ◽  
Descriptive Analysis ◽  
Financial Service ◽  
Primary Data ◽  
Care Network ◽  
Network Availability ◽  
Factors Influencing ◽  
Customer Care ◽  
Mobile Financial Services ◽  
Financial Transactions

The financial sector is important to any nation for its economic development. The mobile telecommunication technology in Tanzania for instance has changed the way people perform financial transactions. Customers perform financial transactions using their mobile phones at anytime and anywhere provided that the customer is registered and activated into using the Mobile financial service. However, there are still long queues at the banks for doing financial transactions that could be done using mobile financial service. In order to motivate people into using the MFS, it is then important to ensure to customers derive satisfaction from using the service as it is with the formal banking service or beyond. This study aims at examining the factors influencing the customer satisfaction with mobile financial services in Tanzania. To achieve these objectives the study uses mainly primary data from 105 respondents selected using both purposive and non-purposive sampling techniques. The study employs both descriptive analysis and regression analysis. Descriptive analysis shown that, Tigo pesa, M pesa and Airtel Money are the frequently used MFS with Tigo pesa being leading. Majority of customers are satisfied with MFS (70%), and Mobile Network Operators are concentrating on making sure customers are satisfied by educating them on how to use MFS, ensuring network is reliable, lowering transaction charges and improving customer care, among others. The logistic estimates indicate that, Age, Gender, Employment, Customer care, Network availability, Meet needs, and Education are significant factors that influence customer’s satisfaction with frequently used MFS in Tanzania. The probability of a customer to be satisfied with MFS is higher if MFS meet needs of a customer, the customer is employed, gets good customer care, male, and if the network is available. From these findings, it is advised that any strategy targeting to make customers more satisfied with MFS should consider Customer care, Network availability, and needs of the customers. Also policies and programs that enhance employment are vital in making majority of people secure jobs and finally satisfied with MFS.

scholarly journals Jual Beli Model ‘Inah di Lembaga Keuangan Syariah: Tinjauan Konsep, Hukum dan Implementasi

2018 ◽  
Vol 3 (1) ◽  
pp. 67
Author(s):  
Richa Angkita Mulyawisdawati ◽  
Mufti Afif
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Credit Card ◽  
Qualitative Method ◽  
Classic Problem ◽  
Islamic Financial Institutions ◽  
Financial Transactions ◽  
Level Of Risk ◽  
Descriptive Qualitative

The sale and purchase of 'inah and tawarruq is a classic problem that is recognized or not continues to grow and be practiced by individuals and financial institutions to date. Based on the facts on the ground, this type of engineering of sale and purchase occurs in Islamic Financial Institutions (LKS), where Islamic Financial Institutions only serve and serve financial services for its customers who need funds. So much is found that most LKS activities lead to financing through murabahah scheme where the scheme of the contract is considered safe for the LKS because the level of risk is lower than other types of contract. This paper is intended to determine the nature of the concept and legal sale and purchase 'inah and tawarruq according to scholars fiqh classics and how the practices of these two transactions became an issue on financial transactions in LKS. By using descriptive qualitative method, literature approach and history, it is produced that the type of sale of 'Inah and Tawarruq is still debated by the jurists of fiqh jurisprudence and the tendency is forbidden because there is a rift of ribawi transaction in it. While in practice in LKS is still widely applied and growing especially in superior products (murabahah) as in financing business capital, credit card, home financing or home renovation or the like and gold-based financing.

Remittances and financial institutions: is there a causal linkage?

2015 ◽  
Vol 15 (2) ◽  
Author(s):  
Alberto Posso
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Financial Services ◽  
Development Process ◽  
Home Country ◽  
Microfinance Institutions ◽  
Reverse Effect ◽  
Future Income ◽  
Key Driver ◽  
Migrant Remittances

AbstractThe extant literature indicates that remittance inflows from developed to developing countries provide liquidity for domestic financial institutions, which aids in the development process. However, the reverse effect has been neglected. This paper tests whether more financial services and opportunities in the home country attract remittances to developing countries. It addresses this hypothesis using a dataset of 72 developing countries over the period 1997–2011. The paper finds evidence that remittance inflows are driven by increased availability of domestic financial services. In particular, the presence of microfinance institutions is found to be a key driver in stimulating migrant remittances. These findings, perhaps, suggest that remittance-sending migrants may not be altruistic and send remittances to maximize their own future income. Alternatively, the results suggest that microfinance organizations have been successful in attracting remittances by lowering transaction costs and proving linked services.

Mobile Financial Services in Developing Countries

2021 ◽  
pp. 521-534
Author(s):  
Gordian Stanslaus Bwemelo
Keyword(s):  
Mobile Phones ◽  
Financial Institutions ◽  
Financial Services ◽  
Mobile Technologies ◽  
New Wave ◽  
Social Lives ◽  
Rapid Spread ◽  
Mobile Financial Services ◽  
Financial Behaviour ◽  
The Impact

This chapter describes how mobile technologies have recently emerged as the new wave in Information Technology revolution and are constantly gaining importance and popularity in nearly every avenue of our working and social lives. One area of mobile technology that has become a focus in recent times is the use of mobile devices particularly the mobile phones for an array of financial services. Mobile financial services and their massive adoption and rapid spread in the developing world, has deepened investments in mobile infrastructure and has further contributed to financial inclusion and economic development. Their adoption, in particular, has had a significant impact on consumer financial behaviour. This chapter builds on a rich body of literature available to highlight the impact of mobile financial services on consumer financial behaviour and the implications for financial institutions.

Mobile Financial Services in Developing Countries

2018 ◽  
pp. 47-63
Author(s):  
Gordian Stanslaus Bwemelo
Keyword(s):  
Mobile Phones ◽  
Financial Institutions ◽  
Financial Services ◽  
Mobile Technologies ◽  
New Wave ◽  
Social Lives ◽  
Rapid Spread ◽  
Mobile Financial Services ◽  
Financial Behaviour ◽  
The Impact

This chapter describes how mobile technologies have recently emerged as the new wave in Information Technology revolution and are constantly gaining importance and popularity in nearly every avenue of our working and social lives. One area of mobile technology that has become a focus in recent times is the use of mobile devices particularly the mobile phones for an array of financial services. Mobile financial services and their massive adoption and rapid spread in the developing world, has deepened investments in mobile infrastructure and has further contributed to financial inclusion and economic development. Their adoption, in particular, has had a significant impact on consumer financial behaviour. This chapter builds on a rich body of literature available to highlight the impact of mobile financial services on consumer financial behaviour and the implications for financial institutions.

Explaining the determinants of continual use of mobile financial services

2019 ◽  
Vol 22 (1) ◽  
pp. 15-31
Author(s):  
Joseph Kwame Adjei ◽  
Solomon Odei-Appiah ◽  
Peter Ebo Tobbin
Keyword(s):  
Information System ◽  
User Satisfaction ◽  
Financial Services ◽  
Ease Of Use ◽  
Perceived Usefulness ◽  
Major Barrier ◽  
Research Attention ◽  
Content Type ◽  
Mobile Financial Services ◽  
Good Agent

Purpose Information system continuance model has been used in a number of studies to explain information system continuance in different contexts. However, very little research attention has been given to continuous use of mobile financial services (MFS). The purpose of this study is to fill this research gap by identifying the main factors that influence the continual use of MFS. Design/methodology/approach A sample was randomly taken from MFS registered accounts or mobile wallets. A five-point Likert scale survey was conducted in Ghana. Structural equation modelling was used to test the data. Constructs such as continual use, satisfaction, perceived usefulness and confirmation were adapted from information system continuance model to suit the requirement of MFS. A pilot study was then carried out after the questionnaire was developed to gauge the appropriateness of the survey questions. Findings Results from the survey indicated that user satisfaction has the greatest impact on the continual use of mobile financial services. Good agent quality and satisfaction were the second most influential determinant. Satisfaction was, in turn, confirmed to be determined by perceived usefulness. Another important contributor to MFS continual use was found to be perceived ease of use (PEOU) with an impact surprisingly higher than that of perceived usefulness. There was a significant impact of good agent quality on satisfaction, which could be attributed to the characteristics of the technology for the study. Research limitations/implications Although a relatively high R2 (71%) was indicated by the proposed model, there is need for additional factors to be identified to improve the ability to predict and explain the continual use of MFS. A longitudinal study would have enhanced the identification of determinants and the understanding of their inter-relationships to influence MFS continual use. Practical implications To ensure continual use of MFS, PEOU as identified by the study is important to ensure that customers can use the service with little effort. Good agent quality can promote PEOU in the sense that competent agents can render relevant tutorials to customers’ right after the registration process. This will address a major barrier to continual use, which is the lack of understanding of how MFS operate. Social implications This study contributes to ensuring financial inclusion such that the unbanked can have access to financial services and also improve digital inclusion. Originality/value The study provides empirical evidence to support the substantive differences between acceptance and continual use behaviours, integrating the constructs of good agent quality and PEOU into our understanding of information system continual use literature. The authors also theorized and evaluated a model of MFS continual use.

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