Abstract
This study examines the use and impact of mobile money and microfinance services in Ghana. It explores the perspectives of mobile money and microfinance service providers and consumers to identify the nature and extent of use, and their separate and complementary impact on financial inclusion. Qualitative data collected through interviews with service providers, agents, and consumer focus groups were used to draw parallels and contrasts between provider and consumer perceptions on impacts and challenges of the systems. The study addressed four specific objectives identified as provider perceptions on mobile money and microfinance integrations and financial inclusion; consumer perceptions on mobile money and microfinance integrations and financial inclusion; impacts of mobile money and microfinance integrations on the financial inclusion ecosystem; and challenges of mobile money and microfinance integrations for financial inclusion in Ghana. The results showed that provider perceptions primarily focus on consumer access, product range, convenience, and regulatory climate. Consumer perceptions also focus on network capacity, fraud and security, and complex user designs. The impacts of mobile money integrations appear to be additive for most users but also transformative for users who were previously excluded from the formal financial sector. However, there are eminent challenges related to system failures, fraud and security concerns, and consumer protection to be addressed to help facilitate the efficiency and sustainability of the mobile money ecosystem.
Highlights
About three-quarters of the countries participating in the technological and financial revolution of mobile money are in Africa, where there are more mobile money accounts than bank accounts [1,2,3]
The mobile network operators (MNOs) shared the notion that strategic partnerships and agent network developments were the key factors that have promoted the success of mobile money
Customer relations play an important role because the service builds on the trust and confidence of clients and the existing relationships with telecom service providers
Summary
About three-quarters of the countries participating in the technological and financial revolution of mobile money are in Africa, where there are more mobile money accounts than bank accounts [1,2,3]. According to the Group Specile Mobile Association (GSMA), sub-Saharan Africa (SSA) has 338.5 million active mobile money accounts registered through 135 network operator services which makes it the highest of any world region [4]. For half of these active subscribers, mobile money is transformative as these wireless provider-led financial transaction accounts is their only connection to the financial system without directly owning a bank account [5]. Just about 9% of adults in developing economies have savings and credit with formal financial institutions, and the rest use informal options such as MFIs, individual money lenders, and family members [5]. Most studies have examined the use and impact of mobile money and Judith Aboagye and Sophia Anong: Provider and Consumer Perceptions on Mobile Money and Microfinance
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