Mobile money: a gateway to achieving financial inclusion in Ghana
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Date
2022
Authors
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Journal ISSN
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Publisher
Enterprise Development and Microfinance
Abstract
While emerging studies on mobile financial inclusion have
focused on the factors driving the adoption of mobile money, little evidence
exists on how the service is facilitating the use of formal financial services.
Using the World Bank Findex data, we estimate the effect of mobile money
adoption on the use of formal accounts, savings, and credit in Ghana.
The results of the recursive bivariate probit analysis showed a significant
symbiotic relationship between mobile money adoption and the probability
of operating a formal account. Mobile money adoption has a positive
effect on savings and access to credit but does not affect the avenues to
savings and obtaining credit, respectively. Mobile money users save in their
wallet and obtain microcredit through the mobile money platform but
not through formal channels. These findings reinforce the hypothesis
that mobile money is the surest financial tool for achieving universal
financial inclusion in developing countries.
Description
Research Article
Keywords
mobile money, financial inclusion, savings