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No Kenyan Left Behind: The Model Of Financial Inclusion Through Mobile Banking

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  • Tony Mutsune

Abstract

The importance of widespread access to suitable financial services for the populace in fostering economic vitality is well recognized. Regrettably, much of the developing world experiences a relative scarcity of crucial financial services in rural and semi-urban areas. With estimated mobile devise ownership at over 700 million in Africa, innovative banking solutions such as mobile banking offer potential channels to advance the access frontier in the banking industry. This study examines Kenya’s highly successful money transfer model, M-pesa, in an effort to explore the nature and role of financial inclusiveness in stimulating economic activity. M-pesa allows ordinary Kenyans to send money across the country cheaply and reliably using mobile devises. As such, the stage appears set for a mass adoption by similarly situated countries in the region that are keen to enhance their financial services. Understanding the nature and role of economic dynamism dispensed through financial inclusiveness can be useful for policy prescription and future studies, among other things. To this end, we borrow from a combination of the ideas of velocity circulation of money and a simple diffusion model to develop a framework for empirical study.

Suggested Citation

  • Tony Mutsune, 2015. "No Kenyan Left Behind: The Model Of Financial Inclusion Through Mobile Banking," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 6(1), pages 35-42.
    • Handle: RePEc:ibf:rbfstu:v:6:y:2015:i:1:p:35-42
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    References listed on IDEAS

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    Cited by:

    1. Florence Chemtai & Francis Omillo Okumu & Geoffrey Kiptum Kimutai, 2024. "Process Innovation and Financial Inclusion of Microfinance Customers in North Rift Region of Kenya," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 11(1), pages 1-1, December.
    2. Alfonso Siano & Lukman Raimi & Maria Palazzo & Mirela Clementina Panait, 2020. "Mobile Banking: An Innovative Solution for Increasing Financial Inclusion in Sub-Saharan African Countries: Evidence from Nigeria," Sustainability, MDPI, vol. 12(23), pages 1-24, December.
    3. Claudel Mombeuil & Withz Aimable, 2026. "Understanding Barriers to Mobile Payment Adoption in Retail Transactions: Perspectives from Consumers and Merchants in a Developing Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 4676-4711, April.
    4. Chen, Xiaojie & He, Guangwen & Li, Qian, 2024. "Can Fintech development improve the financial inclusion of village and township banks? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).

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    Keywords

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    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Systems; Standards; Regimes; Government and the Monetary System

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