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on Microfinance |
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Issue of 2025–03–24
four papers chosen by Marco Novarese, Università degli Studi del Piemonte Orientale |
| By: | Bizoza, Saidi; Irakoze, Gildas |
| Abstract: | The effectiveness of financial inclusion as an instrument to address income inequalities and social inclusion is no longer questionable, given its contribution to the SDGs agenda (SDGs 1, 2, 3, 9, and 10). However, in Burundi, financial inclusion remains low with major causes being social exclusion and physical distance. Half of the adult population lives more than 8 km from the nearest financial institution, and 44% need more than 60 minutes to get there. Financial services are concentrated in Bujumbura, with 37.5% of bank branches located there, exacerbating accessibility challenges for those in rural areas. Moreover, only 30% of the total banks and microfinance accounts are held by women. The latter disparities have obvious negative consequences in terms of household welfare. Many efforts to address the issue of financial inclusion failed as they relied on classical banking approaches, themselves depending on costly and unaffordable infrastructure in the context of Burundi. Mobile money (MM) has demonstrated significant potential in advancing financial inclusion, particularly in underserved areas such as rural communities and low-income households. Globally, it is celebrated as a transformative tool for bridging the financial inclusion gap and addressing disparities, including the gender gap. However, in Burundi, the adoption and impact of mobile money remain relatively underexplored. This necessitates a critical assessment to identify effective strategies tailored to Burundi's unique context. Drawing direct inferences from other countries without localized evaluation risks policy misalignment and potential failure. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:aaa4d8cf-2b7d-4962-a91b-b3785ed07b86 |
| By: | International Finance Corporation |
| Keywords: | Finance and Financial Sector Development-Finance and Development Finance and Financial Sector Development-Access to Finance Finance and Financial Sector Development-Microfinance Private Sector Development-Microenterprises Poverty Reduction-Poverty Reduction Strategies |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:42081 |
| By: | Daniel, Lanta |
| Abstract: | Financial inclusion, particularly through mobile money services, plays a vital role in fostering economic growth in developing economies by providing access to financial products and services. In Tanzania, where 88% of the population owns mobile phones, approximately 45% possess mobile money accounts. Nevertheless, there remains a notable disparity concerning gender (men and women) and geographical location (rural and Urban), with women in rural areas being more prone to exclusion. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:8259219b-f0af-4e41-93aa-40cc2bd14d60 |
| By: | Osoro, Jared; Bundi, Davis; Kiplangat, Josea |
| Abstract: | The noticeable strides Kenya has made on digital financial services that anchor the positive narrative of financial inclusion is evidently leaning towards payment services. However, digital divide still exists due to behavioural heterogeneity. This paper explores the influence of behavioural biases in access and usage of mobile money services, the dominant digital financial services in Kenya. The 2021 FinAccess data anchors the empirical investigation on the extent to which behavioural biases are an obstacle to access and usage of mobile money. Deploying descriptive statistics on gender disaggregated data and a probit model to estimate marginal effects, we ascertain that behavioural biases contribute to the digital divide evident among men and women households in Kenya. These biases drive a wedge between access and enhanced usage of digital financial services in a manner that slows the sequential process of the former, leading to the latter. Beyond advancing literature in this area, this paper proffers arguments in favour of putting in place measures to enhance household incomes that have a gender lens, for they have the potential of ameliorating the gaps underlying financial exclusion of women and low-income earners in mobile money access and usage. It also argues for a policy position that discourages the consideration of basic digital financial services as a revenue mobilization platform through direct taxation as that could be counterintuitive. |
| Date: | 2024–08–15 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:0cdc9b6d-5d8c-46e6-8f00-e9039cb8238b |