nep-mfd New Economics Papers
on Microfinance
Issue of 2022‒08‒08
three papers chosen by
Olivier Dagnelie
Université de Pau et des Pays de l’Adour

  1. The role of mobile characteristics on mobile money innovations By Asongu, Simplice A; Odhiambo, Nicholas M
  2. Déterminants des ménages et accès au crédit dans les tontines au Cameroun By Atangana Ondoa, Henri; Tomo, Christian Parfait
  3. Client satisfaction and product understanding as drivers for insurance renewal – A case study in Mali By Kirchner, Ella; Musshoff, Oliver

  1. By: Asongu, Simplice A; Odhiambo, Nicholas M
    Abstract: This study focuses on linkages between bank accounts and supply-side mobile money drivers for mobile money innovations. It seeks to understand how bank accounts can be complemented with mobile subscription and mobile connectivity dynamics (i.e., mobile connectivity coverage and mobile connectivity performance) for mobile money innovations. The empirical evidence is based on quadratic Tobit regressions. First, there are positive net relationships from the roles of mobile subscriptions and mobile connectivity coverage in modulating bank accounts for mobile money innovations. Second, mobile connectivity performance does not significantly modulate bank accounts for mobile money innovations. Third, given the negative marginal relationships associated with the positive net relationships, thresholds for complementary policies in mobile money supply factors that are worthwhile for bank accounts to stimulate mobile money innovations are provided. The thresholds are: (i) mobile subscription rates of 87.50%, 80.50%, and 98.50% of the adult population for respectively, the mobile money accounts, the mobile used to send money, and the mobile used to receive money, and (ii) mobile connectivity coverages of 64.00%, 69.33%, and 78.00% for respectively, the mobile money accounts, the mobile used to send money, and the mobile used to receive money.
    Keywords: Mobile money; technology diffusion; financial inclusion; inclusive innovation
    Date: 2022–01
  2. By: Atangana Ondoa, Henri; Tomo, Christian Parfait
    Abstract: The objective of this paper is to identify the determinants of household access to credit from tontines in Cameroon. We use a univariate probit model on a sample of households from the fourth Cameroonian household survey (ECAM IV) collected by the National Institute of Statistics in 2014. Thus, the results show that heads of households who seek credit from Tontines are slightly older women in reference to men. These women have a large household size. However, the fact that the latter apply for consumer credit in reference to credit intended for production or even investment reduces the chances of obtaining credit within the tontines.
    Keywords: Households, Tontines, Access to the credit, Univariate probit, Cameroon.
    JEL: D1 D81 E2 O17
    Date: 2022–06–30
  3. By: Kirchner, Ella; Musshoff, Oliver
    Abstract: Agricultural microinsurance are a promising risk management tool for smallholder farmers. However, adoption rates remain low and only a small share of farmers renews their policy after the first period. Yet, it is essential for the sustainability of an insurance scheme to retain a solid customer base. To date, it is largely unknown what drives the decision to renew an agricultural microinsurance policy. We address this question by performing mean comparisons and logistic regressions based on collected primary data on 479 smallholder farmers in Mali who purchased a weather index-based insurance in 2020. Results show low levels of understanding of the product among all clients, but especially among those who did not renew. Similarly, the level of satisfaction was considerably higher among clients who renewed. Both factors were confirmed as drivers for renewal. Yet, in line with previous findings, the receipt of a payout had the strongest effect on the renewal decision whereas harvest loss in the most recent season was not having an impact. We conclude that additional efforts to foster client satisfaction as well as to promote understanding of agricultural insurance among smallholder farmers are highly recommended.
    Keywords: Agricultural Finance, Risk and Uncertainty
    Date: 2022–04

This nep-mfd issue is ©2022 by Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.