IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/5988.html
   My bibliography  Save this paper

Kenya's mobile revolution and the promise of mobile savings

Author

Listed:
  • Demombynes, Gabriel
  • Thegeya, Aaron

Abstract

The mobile revolution has transformed the lives of Kenyans, providing not just communications but also basic financial access in the form of phone-based money transfer and storage, led by the M-PESA system introduced in 2007. Currently, 93 percent of Kenyans are mobile phone users and 73 percent are mobile money customers. Additionally, 23 percent use mobile money at least once a day. New potential for mobile money has come with the rise of interest-earning bank-integrated mobile savings systems, beginning with the launch of the M-KESHO system in March 2010. The authors examine the mobile savings phenomenon, using data collected in a special survey in late 2010. They show that the usage of bank-integrated mobile savings systems like M-KESHO remains limited and largely restricted to better-off Kenyans. However, what the authors term"basic mobile savings"-- the use of simple mobile money systems as a repository for funds -- is widespread, including among those who are otherwise unlikely to have any savings. Holding other characteristics constant, those who are registered for M-PESA are 32 percent more likely to report having some savings.

Suggested Citation

  • Demombynes, Gabriel & Thegeya, Aaron, 2012. "Kenya's mobile revolution and the promise of mobile savings," Policy Research Working Paper Series 5988, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5988
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/03/06/000158349_20120306084347/Rendered/PDF/WPS5988.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. Pascaline Dupas & Jonathan Robinson, 2013. "Why Don't the Poor Save More? Evidence from Health Savings Experiments," American Economic Review, American Economic Association, vol. 103(4), pages 1138-1171, June.
    3. William Jack & Tavneet Suri, 2011. "Mobile Money: The Economics of M-PESA," NBER Working Papers 16721, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Honorati, Maddalena & McArdle, Thomas P, 2013. "The nuts and bolts of designing and implementing training programs in developing countries," Social Protection and Labor Policy and Technical Notes 78980, The World Bank.
    2. Mayanja, Musa & Adong, Annet, 2016. "A pathway to financial inclusion: mobile money and individual Savings in Uganda," Research Series 242365, Economic Policy Research Centre (EPRC).
    3. Asongu Simplice, 2012. "How has Mobile Banking Stimulated Financial Development in Africa?," Working Papers 12/027, African Governance and Development Institute..
    4. Simplice A. Asongu, 2014. "Knowledge Economy and Financial Sector Competition in African Countries," African Development Review, African Development Bank, vol. 26(2), pages 333-346, June.
    5. Asongu, Simplice A., 2013. "How do institutions matter in the income-equalizing effect of mobile phone penetration?," European Economic Letters, European Economics Letters Group, vol. 2(2), pages 56-61.
    6. Han, Rui & Melecky, Martin, 2013. "Financial inclusion for financial stability : access to bank deposits and the growth of deposits in the Global Financial Crisis," Policy Research Working Paper Series 6577, The World Bank.
    7. Han, Rui & Melecky, Martin, 2013. "Financial Inclusion for Stability: Access to Bank Deposits and the Deposit Growth during the Global Financial Crisis," MPRA Paper 45157, University Library of Munich, Germany.
    8. Simplice A. Asongu, 2013. "How has Mobile Phone Penetration Stimulated Financial Development in Africa?," Journal of African Business, Taylor & Francis Journals, vol. 14(1), pages 7-18, April.
    9. Lwanga, Musa & Adong, Annet, 2016. "A pathway to financial inclusion: mobile money and individual Savings in Uganda," Research Series 234553, Economic Policy Research Centre (EPRC).
    10. Lwanga Mayanja, Musa & Adong, Annet, 2016. "A pathway to financial inclusion: Mobile money and individual savings in Uganda," Research Reports 253557, Economic Policy Research Centre (EPRC).
    11. Simplice Asongu, 2015. "The impact of mobile phone penetration on African inequality," International Journal of Social Economics, Emerald Group Publishing, vol. 42(8), pages 706-716, August.
    12. Asongu, Simplice A. & Odhiambo, Nicholas M., 2017. "Mobile banking usage, quality of growth, inequality and poverty in developing countries," Working Papers 23396, University of South Africa, Department of Economics.
    13. Han, Rui & Melecky, Martin, 2017. "Broader use of saving products among people can make deposit funding of the banking system more resilient," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 47(C), pages 89-102.
    14. Simplice A, Asongu, 2012. "New indicators for the mobile banking nexus," MPRA Paper 38575, University Library of Munich, Germany.
    15. Asongu Simplice, 2013. "Mobile banking and mobile phone penetration: which is more pro-poor in Africa?," Working Papers 13/033, African Governance and Development Institute..
    16. repec:dau:papers:123456789/11979 is not listed on IDEAS
    17. Florence Arestoff & Baptiste Venet, 2013. "Learning to walk before you run: Financial Behavior and mobile banking in Madagascar," Working Papers DT/2013/09, DIAL (Développement, Institutions et Mondialisation).

    More about this item

    Keywords

    Banks&Banking Reform; Emerging Markets; E-Business; Economic Theory&Research; E-Finance and E-Security;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:5988. 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: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.