This Working Paper explores three approaches banks in Kenya have used to respond to mobile money. While nonbank mobile financial services can fundamentally reshape the financial sector in a developing market, as they have clearly done in Kenya, mobile services need not represent an existential threat to the traditional banking industry.
This paper uses research and interviews with customers to understand the value they derive from PAYGo solar, why they decided to purchase it, how they were able to afford and pay for it, and whether they considered the product a “good deal” in the end.
In April 1997, the CGAP Secretariat launched an experiment called the CGAP Pilot Microfinance Capacity-building Initiative in Africa. The initiative spanned East and West Africa and focused primarily on working with African training institutes to provide financial management courses to microfinance institutions (MFIs). The Pilot Initiative sought to build the foundation for the development of a market for quality training and technical assistance services offered on a sustainable basis in the region.
This report analyzes in detail the state of microfinance in 2008 throughout Sub-Saharan Africa focusing on key growth trends, major legal and regulatory changes, funding for microfinance, and performance of MFIs.
The rate of mobile money (MM) adoption among poor people remains low. However, the mechanisms driving adoption are similar to those of other segments. This analysis revealed that social networks and social interactions influence mobile money uptake.