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BRANCHLESS BANKING IN KENYA – DOES MOBILE BANKING AND AGENT BANKING HAVE THE POTENTIAL TO LIFT THE WELFARE OF LOW-INCOME INDIVIDUALS?

Von Rosen, Therese LU (2013) NEKH01 20131
Department of Economics
Abstract
Branchless banking, the use of alternative delivery channels such as mobile banking and agent banking, is becoming increasingly popular among commercial banks in Kenya and in other developing countries. It is believed to reach the low-income and rural individuals as well as making these individuals better off. This study is an attempt to examine whether the use of mobile banking and agent banking can live up to the promise of lifting the welfare of low-income earners in Kenya. Potential welfare gains were identified and these gains were later explored in a household survey. The survey examined the effects from these non-traditional channels on low-income individuals based on their ability to save, to invest and to consume as well as the... (More)
Branchless banking, the use of alternative delivery channels such as mobile banking and agent banking, is becoming increasingly popular among commercial banks in Kenya and in other developing countries. It is believed to reach the low-income and rural individuals as well as making these individuals better off. This study is an attempt to examine whether the use of mobile banking and agent banking can live up to the promise of lifting the welfare of low-income earners in Kenya. Potential welfare gains were identified and these gains were later explored in a household survey. The survey examined the effects from these non-traditional channels on low-income individuals based on their ability to save, to invest and to consume as well as the effects on their overall welfare in terms of food security and health. Findings from this study suggest that mobile banking and agent banking have facilitated the delivery of financial services to previously excluded individuals in Kenya and the result is an economic lift in overall welfare. This paper therefore shows that alternative delivery channels can work as a bridge between the institutions and the excluded, given that the right kind of financial tools are provided in order for opportunities to be created through financial inclusion. Finally, for these non-traditional delivery channels to be effective, institutions need to be creative as well as understand the low-income earners and their financial needs. (Less)
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author
Von Rosen, Therese LU
supervisor
organization
course
NEKH01 20131
year
type
M2 - Bachelor Degree
subject
keywords
Branchless banking, Financial incluson, Mobile banking, Agent banking
language
English
id
4017752
date added to LUP
2013-09-17 15:59:21
date last changed
2013-09-17 15:59:21
@misc{4017752,
  abstract     = {Branchless banking, the use of alternative delivery channels such as mobile banking and agent banking, is becoming increasingly popular among commercial banks in Kenya and in other developing countries. It is believed to reach the low-income and rural individuals as well as making these individuals better off. This study is an attempt to examine whether the use of mobile banking and agent banking can live up to the promise of lifting the welfare of low-income earners in Kenya. Potential welfare gains were identified and these gains were later explored in a household survey. The survey examined the effects from these non-traditional channels on low-income individuals based on their ability to save, to invest and to consume as well as the effects on their overall welfare in terms of food security and health. Findings from this study suggest that mobile banking and agent banking have facilitated the delivery of financial services to previously excluded individuals in Kenya and the result is an economic lift in overall welfare. This paper therefore shows that alternative delivery channels can work as a bridge between the institutions and the excluded, given that the right kind of financial tools are provided in order for opportunities to be created through financial inclusion. Finally, for these non-traditional delivery channels to be effective, institutions need to be creative as well as understand the low-income earners and their financial needs.},
  author       = {Von Rosen, Therese},
  keyword      = {Branchless banking,Financial incluson,Mobile banking,Agent banking},
  language     = {eng},
  note         = {Student Paper},
  title        = {BRANCHLESS BANKING IN KENYA – DOES MOBILE BANKING AND AGENT BANKING HAVE THE POTENTIAL TO LIFT THE WELFARE OF LOW-INCOME INDIVIDUALS?},
  year         = {2013},
}