| By: |
Lwanga Mayanja, Musa;
Adong, Annet |
| Abstract: |
This study provides a micro perspective on the impact that mobile money
services have on an individual’s saving behavior using 2013 Uganda FinScope
data. The results show that although saving through mobile phones is not a
common practice in Uganda, being a registered mobile money user increases the
likelihood of saving with mobile money. Using mobile money to save is more
prevalent in urban areas and in the central region than in other regions. This
can be explained by several factors. First, rural dwellers on average tend to
have lower incomes and thus have a lower propensity to save compared with
their urban counterparts. Second, poor infrastructure in rural areas in terms
of the lack of electricity and poor telecommunication network coverage may
limit the use of mobile phones and consequently the use of mobile money as a
saving mechanism. Overall, the use of mobile money as a saving mechanism is
still very low, which could be partly explained by legal limitations that do
not incorporate mobile finance services into mobile money. The absence of
interest payments on mobile money savings may also act as a disincentive to
save through this mechanism. Given the emerging mobile banking services, there
is need to create greater awareness and to enhance synergies between telecoms
companies and commercial banks. |
| Keywords: |
Mobile Money, Financial Inclusion, Savings, Uganda, Demand and Price Analysis, Financial Economics, Public Economics, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: |
2016–03 |
| URL: |
http://d.repec.org/n?u=RePEc:ags:eprcrr:253557&r=mfd |