Quantifying the Role of Mobile Money Services to Financial Inclusion: Evidence from EVC-PLUS in Somalia

This study aims to quantify the impact of mobile money services on financial inclusion, focusing on EVC-PLUS services in Somalia. Access, quality, usage, and welfare of financial services are measured in financial inclusion. A sample of 385 respondents was examined, and regression methods were employed to estimate the model parameters. The strength and stability of the model are examined to confirm the ability of the model to estimate the relationship between mobile money and the financial inclusion. This study discovered that mobile money directly and positively impacts financial inclusion in Somalia. Access, quality, usage, and welfare indicators are positively and substantially associated with financial inclusion. Mobile money facilitates access to bank accounts and enhances the quality of financial services, including savings mechanisms and loan availability. EVC-PLUS further enhanced the usability of the financial service by enabling its customers to access banking services at convenient times and regularly. The study found that mobile money usage reduced the gender gap, where women have the same financial inclusion privileges as men. This paper suggests that government institutions should adopt a policy framework encouraging financial inclusion through mobile money services.
Source: Global Social Welfare - Category: International Medicine & Public Health Source Type: research