TECHNOLOGY AND FINANCIAL INCLUSION: AN ANALYSIS OF MOBILE MONEY USAGE AND SAVINGS BEHAVIORS IN KENYAN HOUSEHOLDS
Thompson, Jeffrey P
Mobile money, a service that enables money transfers via mobile networks, using phone plan money as an electronic wallet, revolutionized financial inclusion in Kenya over the past decade. It has moved beyond a mere transaction service and developed into a more complex financial mechanism. This thesis explores whether mobile money positively impacted the saving behavior of Kenyan households, using cross-sectional household surveys over several years. With an OLS analysis, it seems that mobile money usage had a significant but not substantial influence on savings likelihood. In fact, the impact on savings appears to be much greater among the unbanked – suggesting that mobile money is indeed an unprecedented way to reach unbanked individuals. An instrumented relationship, using access to mobile money agents as instrument for mobile money, measured by county density of agents, however, shows there is no significant effect of mobile money usage on savings likelihood. The results robustness could be improved with other data, but they suggest that policymakers should think about additional mechanisms to incentivize savings.
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Mobile Money in Developing Economies: A Substitute or Complement to Traditional Financial Instruments Li, Jiaqi (Georgetown University, 2018)Recent years have witnessed a growing interest in mobile money as part of financial inclusion programs aimed at providing access for more people to the formal financial system. However, instead of determining how mobile ...