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Drivers of mobile financial inclusion in Ghana
01.12.2020
Mobile money adoption is gradually bridging the financial inclusion gap in access to financial services between higher- vs. lower-income populations in many developing countries, including Ghana. However, levels of adoption differ within and between countries. Using a nationally representative survey sample of 5,220, this paper examines the determinants of mobile money adoption and use in Ghana and explores how they vary across demographic groups. The probit estimation showed perceived usefulness and social influence as drivers of adoption, while transaction costs inhibit adoption to varying degrees across demographic groups. The major challenges users faced were network failures and high service charges. Measures to enhance mobile network connectivity and liaise with service providers to reduce the service charges would boost adoption and financial inclusion. -
Mobile money: a gateway to achieving financial inclusion in Ghana
01.06.2022
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.