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Analyzing the Mobile-Banking Adoption Process among Low-Income Populations: A Sequential Logit Model

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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)

  • Yaya Ky

    (CRES - Consortium pour la Recherche Economique et Sociale - UCAD - Université Cheikh Anta Diop de Dakar [Sénégal])

  • Ousmane Birba

    (CRES - Consortium pour la Recherche Economique et Sociale - UCAD - Université Cheikh Anta Diop de Dakar [Sénégal])

Abstract

The purpose of this study is to uncover the socioeconomic factors that explain the adoption of mobile banking (mbanking), based on data collected from households in the suburbs of Dakar (Senegal). Starting from the hypothesis that adopting an innovation goes through three stages, at each stage we identify the factors that explain adoption. In the first stage, that of "knowledge", the individual must know about the product and its uses. In the second stage, that of "possession", the person must test the product. If the product is accessible and its advantages are observable, he/she can finally adopt it in the last stage of the process. Therefore, the steps "knowledge" and "possession" are required passages in the adoption process. In this article, we use a sequential logit model to highlight the determinants at each level of this process. The results show that age was the only determining factor in the first stage of adoption, that is, "knowledge" of m-banking. In the second phase, other factors appeared in addition; cognitive factors came into play, such as literacy, education level, as well as financial factors such as membership in a ROSCA (rotating credit and savings scheme) that influenced the ‘possession' of m-banking. At the final stage of the adoption process, the variables education level, wages and owning a business were the factors involved in the adoption of m-banking.

Suggested Citation

  • François-Seck Fall & Yaya Ky & Ousmane Birba, 2015. "Analyzing the Mobile-Banking Adoption Process among Low-Income Populations: A Sequential Logit Model," Post-Print halshs-01225149, HAL.
    • Handle: RePEc:hal:journl:halshs-01225149
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01225149
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    References listed on IDEAS

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    1. Warren, Martyn, 0. "The digital vicious cycle: Links between social disadvantage and digital exclusion in rural areas," Telecommunications Policy, Elsevier, vol. 31(6-7), pages 374-388, July.
    2. Tutz, Gerhard, 1991. "Sequential models in categorical regression," Computational Statistics & Data Analysis, Elsevier, vol. 11(3), pages 275-295, May.
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    Cited by:

    1. Patrick-Hervé Mbouombouo Mfossa, 2022. "Mobile money-driven financial inclusion, exposure to shocks and households' financial resilience strategies adoption process: Evidence from Cameroon [Inclusion financière via le mobile money, expos," Working Papers hal-03614064, HAL.
    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. Nenubari John Ikue & John Sodipo & Samuel Zeb-Omoni & Onyinyechi Uche & Linus Enegesi & Ernest Taenyi & Edwin Ekuase & Mtomabari Simeon & Boma Alalibo, 2021. "Mobile money operations, financial inclusion and Socioeconomic factors in the Niger-Delta Region of Nigeria," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(5), pages 224-234, July.
    4. François Seck Fall & Luis Orozco & Al‐Mouksit Akim, 2020. "Adoption and use of mobile banking by low‐income individuals in Senegal," Review of Development Economics, Wiley Blackwell, vol. 24(2), pages 569-588, May.
    5. Désiré Avom & Honoré Bidiasse & Grégory Mvogo, 2021. "Adoption et usage du mobile money au cameroun: Analyse comparative des determinants entre les villes de Douala et de Yaounde," African Development Review, African Development Bank, vol. 33(1), pages 67-78, March.
    6. Loaba, Salamata, 2022. "The impact of mobile banking services on saving behavior in West Africa," Global Finance Journal, Elsevier, vol. 53(C).
    7. Komivi Afawubo & Messan Agbaglah & Mawuli K. Couchoro & Tchapo Gbandi, 2017. "Socioeconomic determinants of the mobile money adoption process: the case of Togo," Cahiers de recherche 17-03, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    8. Gbêtondji Melaine Armel Nonvide & Alastaire Sèna Alinsato, 2023. "Who uses mobile money, and what factors affect its adoption process? Evidence from smallholder households in Cote d’Ivoire," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(1), pages 117-127, March.

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    More about this item

    Keywords

    Mobile banking; Low-income populations; Sequential Logit Model; Senegal; innovation adoption;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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