Types of Research
Access to financial services can enhance low-income households’ ability to invest in their livelihoods, safeguard their assets, manage risks, smooth income, and escape poverty (Cull, Ehrbeck & Holle, 2014; Dupas & Robinson, 2013). Yet worldwide 35% of men and 42% of women remain unbanked (Demirgüç-Kunt et al., 2015). Approximately half of the financially excluded population has access to a mobile phone, which may facilitate access to new digital financial services (DFS) such as mobile money (GSMA, 2015). Increasing access to and adoption of DFS-based technologies such as mobile money may therefore represent a significant opportunity for increasing financial inclusion. This potential may be especially great among the poor, and among rural, low-income women in particular, who in the past have been under-served by conventional bank-based financial services.
In this report we analyze three waves of the Intermedia Financial Inclusion Insights (FII) Survey, a nationally-representative household survey conducted in 2013/14, 2014, and 2015 in Kenya, Uganda, Tanzania, Nigeria, Pakistan, Bangladesh, India, and Indonesia. We run multiple logistic regressions using pooled survey data and country and wave fixed-effects to explore sociodemographic and economic factors associated with mobile money adoption, awareness, and use across countries and over time.
We find that rural respondents and respondents below the Progress out of Poverty Index (PPI) score have statistically significant negative associations with awareness and adoption for each survey wave and for most countries, consistent with less reach of mobile money in these populations. Indicators of education, including level of education acquired and literacy, have a positive association with awareness and adoption across countries and across survey waves. Phone ownership and having a bank account are consistently strongly associated with awareness, adoption, and use of mobile money; and the effects of these factors are the largest in terms of magnitude for mobile money adoption and use.
Women have consistently lower levels of awareness, adoption, and use than men across countries. Even controlling for other sociodemographic and economic factors, we find that being female is associated with an overall lower likelihood of awareness of mobile money. Across all countries, women who are aware of mobile money are also less likely to adopt mobile money than are aware men, with the negative effect of gender increasing in each wave. Gender does not have a significant association with the use of mobile money among those that have adopted it, however, which suggests that barriers to first-time use may be the most important for women’s access to mobile money.
These findings indicate that to realize the potential of DFS to reach currently unbanked populations and increase financial inclusion, particular attention needs to be paid to barriers faced by women in accessing mobile money. While policies and interventions to promote education, employment, phone ownership, and having a bank account may broadly help to increase mobile money adoption and use, potentially bringing in currently unbanked populations, specific policies targeting women may be needed to close current gender gaps.
An ongoing stream of EPAR research considers how public good characteristics of different types of research and development (R&D) and the motivations of different providers of R&D funding affect the relative advantages of alternative funding sources. For this project, we seek to summarize the key public good characteristics of R&D investment for agriculture in general and for different subsets of crops, and hypothesize how these characteristics might be expected to affect public, private, or philanthropic funders’ investment decisions.
Land tenure refers to a set of land rights and land governance institutions which can be informal (customary, traditional) or formal (legally recognized), that define relationships between people and land and natural resources (FAO, 2002). These land relationships may include, but are not limited to, rights to use land for cultivation and production, rights to control how land should be used including for cultivation, resource extraction, conservation, or construction, and rights to transfer – through sale, gift, or inheritance – those land use and control rights (FAO, 2002). Land tenure security – i.e., the level of confidence landholders have in their land rights – depends on the ability of informal and formal institutions to enforce those land rights and prevent others from challenging them (Feder & Feeny, 1991). In low and middle income countries land tenure security has been linked to improved land management including greater investments to improve land and agricultural productivity (Deininger & Jun, 2006; Deininger, Ali, & Alemu, 2011; Ali, Deininger, & Goldstein, 2014; Lawry et al., 2017). Having legal documentation in particular has been associated with a greater sense of ownership over land, increases in land productivity and capital investments associated with land, and in some cases additional financial opportunities such as access to credit for landholders with formal land titles (Deininger, Ali, & Alemu, 2011). But in spite of the widely recognized benefits of land tenure security more than 70 percent of the world’s population – and in particular many poor and vulnerable populations including ethnic minorities, smallholder farmers, and women – still lack access to formal systems to register their property and receive legally recognized land titles (Place, 2009; Enemark et al., 2014; Mitchell et al. 2016).
This research considers how public good characteristics of different types of research and development (R&D) and the motivations of different providers of R&D funding affect the relative advantages of alternative funding sources. We summarize the public good characteristics of R&D for agriculture in general and for commodity and subsistence crops in particular, as well as R&D for health in general and for neglected diseases in particular, with a focus on Sub-Saharan Africa and South Asia. Finally, we present rationales for which funders are predicted to fund which R&D types based on these funder and R&D characteristics. We then compile available statistics on funding for agricultural and health R&D from private, public and philanthropic sources, and compare trends in funding from these sources against expectations. We find private agricultural R&D spending focuses on commodity crops (as expected). However contrary to expectations we find public and philanthropic spending also goes largely towards these same crops rather than staples not targeted by private funds. For health R&D private funders similarly concentrate on diseases with higher potential financial returns. However unlike in agricultural R&D, in health R&D we observe some specialization across funders – especially for neglected diseases R&D - consistent with funders’ expected relative advantages.
A “new wave” of digital credit products has entered the digital financial services (DFS) market in recent years. These products differ from traditional credit by offering loans to borrowers that can be applied for, approved, and disbursed remotely (often without any brick-and-mortar infrastructure), automatically (generally minimizing or eliminating person-to-person interaction), and instantly (often in less than 72 hours). Digital credit also increasingly considers creditworthiness by using alternative (nontraditional) data—ranging from mobile phone activity to utility payments and social media data—potentially allowing for loans to populations previously unable to access bank credit. Two EPAR reports review the characteristics of digital credit offerings in India, Kenya, Nigeria, Tanzania, and Uganda, and regulations specific to digital credit in Africa and Asia.
Mobile technology is associated with a variety of positive development and social outcomes, and as a result reaching the “final frontier” of uncovered populations is an important policy issue. We use proprietary 2012 data on mobile coverage from Collins Bartholomew to estimate the proportion of the population living in areas without mobile coverage globally and in selected regions and countries, and use spatial analysis to identify where these populations are concentrated. We then compare our coverage estimates to data from previous years and estimates from the most recent literature to provide a picture of recent trends in coverage expansion, considering separately the trends for coverage of urban and rural populations. We find that mobile coverage expansion rates are slowing, as easier to reach urban populations in developing countries are now almost entirely covered and the remaining uncovered populations are more dispersed in rural areas and therefore more difficult and costly to reach. This analysis of mobile coverage trends was the focus of an initial report on mobile coverage estimates.
In a follow-up paper prepared for presentation at the 2016 APPAM International Conference, we investigate the assumption that levels of mobile network coverage are related to the degree of market liberalization at the country level. We find that there is no significant association between mobile coverage and two indicators of mobile-specific market liberalization, the number of mobile operators and the Herfindahl-Hirschman Index (HHI) for the mobile industry, but find a strong and positive significant association when using a measure of more general market liberalization, the Country Policy and Institutional Assessment (CPIA) Business Regulatory Environment rating. This result indicates that general market liberalization to promote competitiveness in both the mobile industry and in complementary industries may support mobile coverage expansion. We also find a strong negative relationship between mobile coverage and the rural proportion of the population, and a strong positive relationship between coverage and GNI per capita, highlighting the importance of demand side factors in coverage expansion. However, we cannot assess whether market liberalization alone will be sufficient to reach universal mobile coverage, especially for rural populations, without also increasing GNI per capita or subsidizing expansion costs to less profitable areas. Our findings have significant implications for policymakers, as without efforts to promote coverage expansion, the largely rural, agricultural, and low-income populations without mobile coverage are likely to be increasingly disadvantaged by their inability to access information and financial services, among other potential benefits of mobile technology.
In Sub-Saharan Africa, 12% of adults now report having a mobile money account, representing over a quarter of the share of those who have any kind of financial account at all. As mobile money expands, there is interest in how regulatory frameworks develop to support digital financial services (DFS) and also support broader financial inclusion. In theory, protecting consumers from risk, and ensuring that they have the information and understanding required to make informed decisions, may increase their confidence and trust in mobile money systems, leading to higher adoption and usage rates. However, consumer protection regulations may also carry certain trade-offs in terms of cost, usage, and innovation. The challenge, according to proponents of consumer protection, is to develop regulations that promote access and innovation, yet still offer an acceptable level of consumer protection. We review the literature on consumer protection institutions and regulatory documents for DFS (particularly mobile money) in 22 developing countries, and identify examples of specific consumer protection regulations relevant to mobile money in each country. Following an introduction to regulatory institutions and documents relating to consumer protection and DFS, we identify examples of regulations covering charges to consumers including fees, tariffs, and taxes for DFS in each country. We then review consumer protection regulations relating to costs from consumer losses resulting from system errors, erroneous transactions, agent misconduct, bankruptcy, and fraud. We further review regulations relating to transparency of provider terms and conditions, procedures for protecting consumers from harm, and complaints and dispute resolution.
We review the status and characteristics of 48 national identity programs and initiatives in 43 developing countries, and evaluate how these programs are being connected to—or used for—service provision. The identity programs we review are mainly government-issued national IDs. However, we also review other types of national identity programs with links to various services including voter cards, passports, and two programs targeting the poor and the banking population. Following a brief review of the roles of identity systems in development and recent identity system trends, we present an overview of the 48 national identity programs, including technical features (such as whether physical identities incorporate an electronic component or are embedded with biometric features), implementation status, population enrollment strategies, and coverage. We next review evidence of implementation challenges around accountability, privacy, data management, enrollment, coverage, cost, and harmonization of identity programs. Finally, we present the functional applications of national identity programs, reporting how these programs are linked with services in finance, health, agriculture, elections, and other areas, and analyzing whether particular identity program characteristics are associated with functional applications.
We review the literature on the status of interoperable payment schemes and regulations for financial services (particularly mobile money) in 46 developing countries, and identify examples of countries with interoperable mobile money schemes and/or regulations pertaining to mobile money and/or interoperability. Following a brief introduction to mobile money and interoperability, we present an overview of the status of mobile money in the 46 selected countries. We then review country regulations regarding both mobile money and payment systems as well as the form of these regulations (National Payment Law or Strategy, regulations, guidelines, etc.) for each country. We further discuss mobile money regulations, specifically regulations that pertain to bank-based versus non-bank based mobile money schemes, regulatory safeguards, and agent banking. In the final section we review regulations pertaining to interoperable mobile money services and outline where such regulations have been documented, highlighting countries with interoperable mobile money markets.
This report provides a summary of findings from six Financial Inclusion Insights (FII) data analysis reports conducted by various agencies for the Bill & Melinda Gates Foundation (BMGF). These reports investigate barriers to financial inclusion and use of digital financial services (DFS) in Bangladesh, India, Kenya, Nigeria, Pakistan, Tanzania, and Uganda. We compile comparable gender-specific statistics, summarize the authors’ findings to determine commonalities and differences across countries, and highlight gender-specific conclusions and recommendations provided in the studies.