The Effect of Mobile Money Services in Enhancement of Financial Inclusion of Rural Areas a Case Study of Buwama

Abstract

This study sought to examine the effects of mobile money services in the enhancement of financial inclusion in Buwama town as the case study. Rural areas like Buwama have been excluded from financial services especially the commercial banks and other financial institution. The study is expected to contribute to the body of knowledge and evidence necessary as regards to underlining the importance of mobile money as a core contribution factor towards enhancement of financial inclusion in rural areas. The objectives of this study were; to identify the role played by MM services in the enhancement of financial inclusion in the rural households.

The study employed quantitative and qualitative approaches of data collection and analysis. A sample of 50 respondents from around Buwama was studied. Qualitative and quantitative data was collected using semi-structured questionnaires, interview guides and use observation methods.

The researcher found out that MM services have greatly contributed to the people in the area in ways of providing the same financial services that the banks that excluded them provide. The researcher recommended that MNO should provide pay way machines in the area to enable the masses withdraw money even after the MM agents have closed up and gone home.

The researcher found out that there are a number of MM services that are provided for by these MNO which include; savings, transfers, transactions, withdraws, credit, insurance and among others. Sending and receiving of money can also be done across net works. The researcher recommended that the MNO should provide an option for speaker phone in a number of languages. This will help the illiterate in the area carry out transactions on their phones without having to ask assistance from neighbours or friends.

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