Mobile Money and Banking Development in Sub-Saharan Africa
The study investigated the relationship between mobile money growth and banking development in Sub-Saharan Africa. The question of whether mobile money threatens or supports traditional banks is contentious. Therefore, the motivation was to comprehensively examine the extent of mobile money's i...
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| Format: | Article |
| Language: | English |
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Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house
2023-12-01
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| Series: | Scientific Annals of Economics and Business |
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| Online Access: | https://saeb.feaa.uaic.ro/index.php/saeb/article/view/2352 |
| _version_ | 1797384694810017792 |
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| author | Jonathan Tembo |
| author_facet | Jonathan Tembo |
| author_sort | Jonathan Tembo |
| collection | DOAJ |
| description | The study investigated the relationship between mobile money growth and banking development in Sub-Saharan Africa. The question of whether mobile money threatens or supports traditional banks is contentious. Therefore, the motivation was to comprehensively examine the extent of mobile money's influence on banking development. The study used a quantitative research design with aggregated quarterly panel data from the four regions of Sub-Saharan Africa. The Panel ARDL estimation was applied to quantify the nature of the relationship between mobile money and banking development variables. Study findings showed that an increase in active mobile money accounts and volumes was associated with a decline in bank accounts, bank branches, and ATMs in the long run. At the same time, this trend was offset by positive impacts on private sector credit and total bank assets again in the long run. The findings align and extend the technology acceptance models and show that increased use of mobile money technology has substitution and complementary effects on banking development. Policymakers and financial institutions should carefully consider the potential trade-offs and synergies between mobile money adoption and traditional banking services, leveraging the positives while addressing challenges arising from the disruptive forces of technological innovation. |
| first_indexed | 2024-03-08T21:38:58Z |
| format | Article |
| id | doaj.art-b4a34e237ed6447aa30ab27f5aabe922 |
| institution | Directory Open Access Journal |
| issn | 2501-3165 |
| language | English |
| last_indexed | 2024-03-08T21:38:58Z |
| publishDate | 2023-12-01 |
| publisher | Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house |
| record_format | Article |
| series | Scientific Annals of Economics and Business |
| spelling | doaj.art-b4a34e237ed6447aa30ab27f5aabe9222023-12-20T15:39:57ZengEditura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing houseScientific Annals of Economics and Business2501-31652023-12-0170462965010.47743/saeb-2023-00361383Mobile Money and Banking Development in Sub-Saharan AfricaJonathan Tembo0University of Johannesburg, South AfricaThe study investigated the relationship between mobile money growth and banking development in Sub-Saharan Africa. The question of whether mobile money threatens or supports traditional banks is contentious. Therefore, the motivation was to comprehensively examine the extent of mobile money's influence on banking development. The study used a quantitative research design with aggregated quarterly panel data from the four regions of Sub-Saharan Africa. The Panel ARDL estimation was applied to quantify the nature of the relationship between mobile money and banking development variables. Study findings showed that an increase in active mobile money accounts and volumes was associated with a decline in bank accounts, bank branches, and ATMs in the long run. At the same time, this trend was offset by positive impacts on private sector credit and total bank assets again in the long run. The findings align and extend the technology acceptance models and show that increased use of mobile money technology has substitution and complementary effects on banking development. Policymakers and financial institutions should carefully consider the potential trade-offs and synergies between mobile money adoption and traditional banking services, leveraging the positives while addressing challenges arising from the disruptive forces of technological innovation.https://saeb.feaa.uaic.ro/index.php/saeb/article/view/2352mobile moneybanking developmentfinancial developmentsub-saharan africa. |
| spellingShingle | Jonathan Tembo Mobile Money and Banking Development in Sub-Saharan Africa Scientific Annals of Economics and Business mobile money banking development financial development sub-saharan africa. |
| title | Mobile Money and Banking Development in Sub-Saharan Africa |
| title_full | Mobile Money and Banking Development in Sub-Saharan Africa |
| title_fullStr | Mobile Money and Banking Development in Sub-Saharan Africa |
| title_full_unstemmed | Mobile Money and Banking Development in Sub-Saharan Africa |
| title_short | Mobile Money and Banking Development in Sub-Saharan Africa |
| title_sort | mobile money and banking development in sub saharan africa |
| topic | mobile money banking development financial development sub-saharan africa. |
| url | https://saeb.feaa.uaic.ro/index.php/saeb/article/view/2352 |
| work_keys_str_mv | AT jonathantembo mobilemoneyandbankingdevelopmentinsubsaharanafrica |