THE ROLE OF MOBILE MONEY IN FINANCIAL INCLUSION IN GHANA

Back to Page Authors: Hussein Mohammed Andani, Mustafa Kemal Yilmaz

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Keywords: mobile money, Ghana, Africa, financial inclusion, banking, mobile phone

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Abstract: In recent years, financial inclusion has become one of the main concerns for policymakers especially in emerging markets across the world. Researchers have expressed different opinions on the most effective way to achieve this goal. In this regard, one tool thus far, that has proven to be effective is mobile money for which the African region leads the world. This study investigates the impact of mobile money on the savings behavior of users in Ghana in the light of the Life-Cycle-Hypothesis. Originality: Most studies in this field are based on the Technology Adoption Model (TAM) or its variants. We deviate from this approach to explore specifically the factors that influence the savings behavior of mobile money users and the extent to which it helps people to save. To the best of our knowledge, this is the first study of this nature using a countrywide sample. Findings: The findings of the study reveal that mobile money has a significant influence on the savings behavior of users in Ghana. The results also show that demographic attributes such as age, marital status, risk aversion, as well as the availability (access to) of formal financial institutions and products are the major drivers of savings behavior of mobile money users in Ghana. The findings of the study will be of significant use to policymakers who seek to increase economic growth through financial inclusion.

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