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Adoption and use of mobile banking by low-income individuals in Senegal

Author

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  • François-Seck Fall

    (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - UT2J - Université Toulouse - Jean Jaurès - UT - Université de Toulouse - Institut d'Études Politiques [IEP] - Toulouse - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville)

  • Luis Orozco

    (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - UT2J - Université Toulouse - Jean Jaurès - UT - Université de Toulouse - Institut d'Études Politiques [IEP] - Toulouse - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville)

  • Al‐mouksit Akim

    (World Bank Group, LEDA-DIAL - Développement, Institutions et Modialisation - LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

The wide use of mobile phones is increasing low-income individuals' access to a large range of services. One of these services is mobile banking (m-banking). Today, m-banking represents a key vector of financial inclusion in many countries in Sub-Saharan Africa, especially in Senegal. Based on technology adoption theories applied to households in developing countries, this paper studies the determinants of the adoption and use of m-banking. We distinguish between possession or adoption from actual use of m-banking and examine the interdependence between these two decisions by using a Heckman sample selection model, through a sample of 1052 individuals in the suburbs of Dakar. Our main results are that the two decisions (adoption and use) are not independent from each other. Individual characteristics, such as education, possession of a bank account, and family network effects, are determinants of the adoption, and age, gender, and being a member of a tontine are determinants of the use. A major result of this study concerns women's low propensity to adopt m-banking because of their low levels of education. However, compared with men, when women adopt m-banking, they have a stronger propensity to use it.

Suggested Citation

  • François-Seck Fall & Luis Orozco & Al‐mouksit Akim, 2020. "Adoption and use of mobile banking by low-income individuals in Senegal," Post-Print hal-02507009, HAL.
  • Handle: RePEc:hal:journl:hal-02507009
    DOI: 10.1111/rode.12658
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    1. Steve Douanla Meli & Benjamin Fomba Kamga, 2023. "Unobserved heterogeneity in the analysis of mobile financial services use: Evidence from the City of Yaoundé," Economics Bulletin, AccessEcon, vol. 43(1), pages 161-176.
    2. Douanla Meli, Steve & Fosso Djoumessi, Yannick & Djiogap, Constant Fouopi, 2022. "Analysis of the socio-economic determinants of mobile money adoption and use in Cameroon," Telecommunications Policy, Elsevier, vol. 46(9).
    3. Ashraf Hilal & Concepción Varela-Neira, 2022. "Understanding Consumer Adoption of Mobile Banking: Extending the UTAUT2 Model with Proactive Personality," Sustainability, MDPI, vol. 14(22), pages 1-23, November.

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    Keywords

    Mobile banking; mobile technologies; technology adoption; financial inclusion; individual characteristics; Senegal;
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