nep-mfd New Economics Papers
on Microfinance
Issue of 2017‒03‒05
two papers chosen by
Olivier Dagnelie
Université de Caen

  1. A pathway to financial inclusion: Mobile money and individual savings in Uganda By Lwanga Mayanja, Musa; Adong, Annet
  2. ‘Leapfrogging’: a Survey of the Nature and Economic Implications of Mobile Money By Janine Aron

  1. By: Lwanga Mayanja, Musa; Adong, Annet
    Abstract: This study provides a micro perspective on the impact that mobile money services have on an individual’s saving behavior using 2013 Uganda FinScope data. The results show that although saving through mobile phones is not a common practice in Uganda, being a registered mobile money user increases the likelihood of saving with mobile money. Using mobile money to save is more prevalent in urban areas and in the central region than in other regions. This can be explained by several factors. First, rural dwellers on average tend to have lower incomes and thus have a lower propensity to save compared with their urban counterparts. Second, poor infrastructure in rural areas in terms of the lack of electricity and poor telecommunication network coverage may limit the use of mobile phones and consequently the use of mobile money as a saving mechanism. Overall, the use of mobile money as a saving mechanism is still very low, which could be partly explained by legal limitations that do not incorporate mobile finance services into mobile money. The absence of interest payments on mobile money savings may also act as a disincentive to save through this mechanism. Given the emerging mobile banking services, there is need to create greater awareness and to enhance synergies between telecoms companies and commercial banks.
    Keywords: Mobile Money, Financial Inclusion, Savings, Uganda, Demand and Price Analysis, Financial Economics, Public Economics, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty,
    Date: 2016–03
    URL: http://d.repec.org/n?u=RePEc:ags:eprcrr:253557&r=mfd
  2. By: Janine Aron
    Abstract: Mobile money is a recent financial innovation giving financial transaction services via a mobile phone, including to the unbanked global poor. Mobile money technology has spread rapidly in the developing world, “leapfrogging” the provision of formal banking services by solving the problems of weak institutional infrastructure and the cost structure of conventional banking. This survey examines the evolution of mobile money, its important role in widening financial inclusion, and the impact of regulation on the development of mobile money systems. It explores the channels of economic influence of mobile money from both a micro and a macro perspective, and presents the first critical survey of the current state of micro and macro empirical literature on the economic impact of mobile money.
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:csa:wpaper:2017-02&r=mfd

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