Is Mobile Banking Breaking the Tyranny of Distance to Bank Infrastructure? Evidence from Kenya
Is the mobile banking revolution overcoming the tyranny of distance to bank infrastructure and improving financial inclusion in sub-Saharan Africa? Focusing on Kenya, this paper uses Global Positioning System (GPS) data to investigate the importance of distance and time to bank branch for personal access to both formal banking services and the mobile banking platform M-Pesa. Evidence suggests that greater distances and time to bank infrastructure reduce the likelihood an individual is formally banked and that despite the significant expansion of the bank branch network in Kenya (2006-2009), the negative relationship between distance to bank branch and the likelihood of being banked has increased. In contrast, evidence is found to support the hypothesis that mobile banking in Kenya is overcoming the tyranny of distance to bank infrastructure for the financial inclusion of all economic groups in Kenya.
|Date of creation:||Oct 2012|
|Contact details of provider:|| Postal: 01|
Phone: 00 353 1 896 3888
Fax: 00 353 1 896 3939
Web page: http://www.tcd.ie/iiis/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Allen Berger & Robert DeYoung, 2001.
"The Effects of Geographic Expansion on Bank Efficiency,"
Journal of Financial Services Research,
Springer;Western Finance Association, vol. 19(2), pages 163-184, April.
- Allen N. Berger & Robert DeYoung, 2000. "The effects of geographic expansion on bank efficiency," Working Paper Series WP-00-14, Federal Reserve Bank of Chicago.
- Allen N. Berger & Robert De Young, 2001. "The effects of geographic expansion on bank efficiency," Finance and Economics Discussion Series 2001-03, Board of Governors of the Federal Reserve System (U.S.).
- Degryse, H.A. & Ongena, S., 2002.
"Distance, Lending Relationships and Competition,"
2002-16, Tilburg University, Center for Economic Research.
- Degryse, H.A. & Ongena, S., 2003. "Distance, Lending Relationships, and Competition," Discussion Paper 2003-123, Tilburg University, Center for Economic Research.
- Hans Degryse & Steven Ongena, 2002. "Distance, Lending Relationships, and Competition," CSEF Working Papers 80, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Jenny C. Aker & Isaac M. Mbiti, 2010.
"Mobile Phones and Economic Development in Africa,"
Journal of Economic Perspectives,
American Economic Association, vol. 24(3), pages 207-232, Summer.
- Kenneth P. Brevoort & John D. Wolken, 2008. "Does distance matter in banking?," Finance and Economics Discussion Series 2008-34, Board of Governors of the Federal Reserve System (U.S.).
- King, Robert G.*Levine, Ross, 1993.
"Finance and growth : Schumpeter might be right,"
Policy Research Working Paper Series
1083, The World Bank.
- Djankov, Simeon & Miranda, Pedro & Seira, Enrique & Sharma, Siddharth, 2008. "Who are the unbanked ?," Policy Research Working Paper Series 4647, The World Bank.
- Isaac Mbiti & David N. Weil, 2011.
"Mobile Banking: The Impact of M-Pesa in Kenya,"
NBER Working Papers
17129, National Bureau of Economic Research, Inc.
- World Bank, 2008. "Finance for All? Policies and Pitfalls in Expanding Access," World Bank Publications, The World Bank, number 6905, February.
- Michael King, 2012. "The Unbanked Four-Fifths: Informality and Barriers to Financial Services in Nigeria," The Institute for International Integration Studies Discussion Paper Series iiisdp411, IIIS.
When requesting a correction, please mention this item's handle: RePEc:iis:dispap:iiisdp412. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Colette Keleher)
If references are entirely missing, you can add them using this form.