EFFECT OF MOBILE MONEY ON THE SAVING BEHAVIOR OF LOW INCOME HOUSEHOLD: EVIDENCES FROM DINAJPUR DISTRICT OF BANGLADESH

Abstract

Mobile money is now extensively acknowledged in Bangladesh. This study tries to explore the ultimate effect of the mobile money use on the saving behavior in the rural low income households. For this purpose, this study applies cross sectional data of 200 samples. The data is collected from direct interview using simple random sampling in the sadar upazila of Dinajpur district. Logistic model and the two stage least square model are applied to identify the factors and effect of mobile money adoption on the saving behavior. The findings reveal that mobile money service adopters have higher degree of propensity to save compared to the non adopters. It also notifies that mobile money service adopter has 2 times higher propensity to save than non adopters. Moreover, rural residents have also higher propensity to save compared to the urban. This study suggests the mobile money services should be properly managed to stable financial inclusion in accordance with income groups, regional and social diversity. This may also helps to reduce the differences among the rural- urban and different income groups also by moving towards achieving sustainable goals.