Effect of Mobile Money on Financial Inclusion Among Rural Communities in the Asikuma-Odoben-Brakwa District of the Central Region of Ghana

Abstract

The concept of mobile money has become very relevant tool for promoting financial inclusion (FI) in many rural and hard to reach communities globally. This study examined the effects of mobile money (momo) on FI in rural communities in the Asikuma-Odoben-Brakwa District in the Central Region of Ghana. The study used description research design with multistage sampling technique to interview 388 adults from 10 of the 14 rural communities using structured interview guide. The study found very high level of awareness of, access to, preference for, and usage of momo than any other financial service in the study area. The study also found that in terms of access by both distance and ratio of adults to branch or agent, momo is momo is more than twenty times than banks/NBFIs. Mobile money has therefore contributed greatly to financial inclusion in the study area. However, momo interoperability has less patronage with majority using momo mainly for cash-in and out, saving and transfers. Benefits derived from momo include convenience, ease of sign-up, ease of use and affordability. Low income, illiteracy and fear of safety of funds are some factors that hinder respondents from accessing formal financial services. Cyber fraud was found to be the biggest threat to momo. Momo service providers should focus on educating people about the existence of the momo interoperability and possibly reduce the transaction charges to increase it usability. Also, there should be a strong collaboration between mobile telecommunications companies, National Communication Authority and Security Agencies to vigorously fight fraud in the mobile money business.