Kenya's Mobile Revolution and the Promise of Mobile Savings

The mobile revolution has transformed the lives of Kenyans, providing not just communications but also basic financial access in the form of phone-based money transfer and storage, led by the M-PESA system introduced in 2007. Currently, 93 percent...

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Main Authors: Demombynes, Gabriel, Thegeya, Aaron
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
GDP
ICT
ID
TAX
WEB
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120306084347
http://hdl.handle.net/10986/3275
id okr-10986-3275
recordtype oai_dc
spelling okr-10986-32752021-04-23T14:02:08Z Kenya's Mobile Revolution and the Promise of Mobile Savings Demombynes, Gabriel Thegeya, Aaron ACCOUNTING BANK ACCOUNT BANK ACCOUNTS BANK BRANCHES BANKING SERVICES BANKS BILL PAYMENTS BUSINESSES CELL PHONE CELL PHONES CENTRAL BANK COMMUNICATION TECHNOLOGIES COMMUNICATION TECHNOLOGY COMMUNICATIONS TECHNOLOGY CONSUMERS DEBT DEPOSIT DEPOSITS DEVELOPMENT POLICY ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC PROGRESS ELECTRONIC MONEY EMPLOYMENT ENABLING ENVIRONMENT ENTREPRENEURSHIP EXPOSURE EXPOSURE TO RISK FINANCIAL PRODUCT FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL TRANSACTIONS GDP GEOGRAPHIC DISTRIBUTION GLOBALIZATION GROWTH STRATEGY HEALTH EXPENDITURES ICT ID IDENTIFICATION IMPLEMENTATIONS INCOME INCOMES INFLATION INFLATION RATE INNOVATIONS INSTITUTION INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL TELECOMMUNICATIONS INTERNATIONALIZATION JOINT VENTURE MACROECONOMIC POLICIES MARKET EFFICIENCY MARKET SHARE MARKETING MATERIAL MICROFINANCE MIGRATION MOBILE ACCESS MOBILE BANKING MOBILE PHONE MOBILE PHONE ACCESS MOBILE PHONE USERS MOBILE PHONES MOBILE SERVICE MOBILE TELEPHONES MOBILE TELEPHONY MOBILE TRANSACTIONS MONEY MARKET MONEY TRANSFER MONEY TRANSFERS NETWORKS OPEN ACCESS PAYMENTS SERVICES PHONE BANKING PHYSICAL BANK PUBLIC POLICY RADIO RAPID GROWTH RESULT RESULTS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS BEHAVIOR SEARCH SERVICE PROVIDER SERVICE PROVIDERS SMALL BUSINESS SMALL BUSINESS ENTREPRENEURS SMALL ENTERPRISES SOCIAL CAPITAL SOCIAL VALUE STORAGE DEVICE TAX TELEPHONE TELLERS TRADITIONAL BANK TRANSACTION TRANSACTION COSTS TYPES OF CONTRACTS UNIVERSAL ACCESS USER USERS USES WEALTH WEB WORLD DEVELOPMENT INDICATORS The mobile revolution has transformed the lives of Kenyans, providing not just communications but also basic financial access in the form of phone-based money transfer and storage, led by the M-PESA system introduced in 2007. Currently, 93 percent of Kenyans are mobile phone users and 73 percent are mobile money customers. Additionally, 23 percent use mobile money at least once a day. New potential for mobile money has come with the rise of interest-earning bank-integrated mobile savings systems, beginning with the launch of the M-KESHO system in March 2010. The authors examine the mobile savings phenomenon, using data collected in a special survey in late 2010. They show that the usage of bank-integrated mobile savings systems like M-KESHO remains limited and largely restricted to better-off Kenyans. However, what the authors term "basic mobile savings" -- the use of simple mobile money systems as a repository for funds -- is widespread, including among those who are otherwise unlikely to have any savings. Holding other characteristics constant, those who are registered for M-PESA are 32 percent more likely to report having some savings. 2012-03-19T17:29:33Z 2012-03-19T17:29:33Z 2012-03-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120306084347 http://hdl.handle.net/10986/3275 English Policy Research working paper ; no. WPS 5988 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Africa Sub-Saharan Africa East Africa Kenya
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTING
BANK ACCOUNT
BANK ACCOUNTS
BANK BRANCHES
BANKING SERVICES
BANKS
BILL PAYMENTS
BUSINESSES
CELL PHONE
CELL PHONES
CENTRAL BANK
COMMUNICATION TECHNOLOGIES
COMMUNICATION TECHNOLOGY
COMMUNICATIONS TECHNOLOGY
CONSUMERS
DEBT
DEPOSIT
DEPOSITS
DEVELOPMENT POLICY
ECONOMIC ACTIVITY
ECONOMIC DEVELOPMENT
ECONOMIC PROGRESS
ELECTRONIC MONEY
EMPLOYMENT
ENABLING ENVIRONMENT
ENTREPRENEURSHIP
EXPOSURE
EXPOSURE TO RISK
FINANCIAL PRODUCT
FINANCIAL SECTOR
FINANCIAL SERVICES
FINANCIAL TRANSACTIONS
GDP
GEOGRAPHIC DISTRIBUTION
GLOBALIZATION
GROWTH STRATEGY
HEALTH EXPENDITURES
ICT
ID
IDENTIFICATION
IMPLEMENTATIONS
INCOME
INCOMES
INFLATION
INFLATION RATE
INNOVATIONS
INSTITUTION
INSURANCE
INTEREST RATE
INTEREST RATES
INTERNATIONAL BANK
INTERNATIONAL TELECOMMUNICATIONS
INTERNATIONALIZATION
JOINT VENTURE
MACROECONOMIC POLICIES
MARKET EFFICIENCY
MARKET SHARE
MARKETING
MATERIAL
MICROFINANCE
MIGRATION
MOBILE ACCESS
MOBILE BANKING
MOBILE PHONE
MOBILE PHONE ACCESS
MOBILE PHONE USERS
MOBILE PHONES
MOBILE SERVICE
MOBILE TELEPHONES
MOBILE TELEPHONY
MOBILE TRANSACTIONS
MONEY MARKET
MONEY TRANSFER
MONEY TRANSFERS
NETWORKS
OPEN ACCESS
PAYMENTS SERVICES
PHONE BANKING
PHYSICAL BANK
PUBLIC POLICY
RADIO
RAPID GROWTH
RESULT
RESULTS
SAVINGS
SAVINGS ACCOUNT
SAVINGS ACCOUNTS
SAVINGS BEHAVIOR
SEARCH
SERVICE PROVIDER
SERVICE PROVIDERS
SMALL BUSINESS
SMALL BUSINESS ENTREPRENEURS
SMALL ENTERPRISES
SOCIAL CAPITAL
SOCIAL VALUE
STORAGE DEVICE
TAX
TELEPHONE
TELLERS
TRADITIONAL BANK
TRANSACTION
TRANSACTION COSTS
TYPES OF CONTRACTS
UNIVERSAL ACCESS
USER
USERS
USES
WEALTH
WEB
WORLD DEVELOPMENT INDICATORS
spellingShingle ACCOUNTING
BANK ACCOUNT
BANK ACCOUNTS
BANK BRANCHES
BANKING SERVICES
BANKS
BILL PAYMENTS
BUSINESSES
CELL PHONE
CELL PHONES
CENTRAL BANK
COMMUNICATION TECHNOLOGIES
COMMUNICATION TECHNOLOGY
COMMUNICATIONS TECHNOLOGY
CONSUMERS
DEBT
DEPOSIT
DEPOSITS
DEVELOPMENT POLICY
ECONOMIC ACTIVITY
ECONOMIC DEVELOPMENT
ECONOMIC PROGRESS
ELECTRONIC MONEY
EMPLOYMENT
ENABLING ENVIRONMENT
ENTREPRENEURSHIP
EXPOSURE
EXPOSURE TO RISK
FINANCIAL PRODUCT
FINANCIAL SECTOR
FINANCIAL SERVICES
FINANCIAL TRANSACTIONS
GDP
GEOGRAPHIC DISTRIBUTION
GLOBALIZATION
GROWTH STRATEGY
HEALTH EXPENDITURES
ICT
ID
IDENTIFICATION
IMPLEMENTATIONS
INCOME
INCOMES
INFLATION
INFLATION RATE
INNOVATIONS
INSTITUTION
INSURANCE
INTEREST RATE
INTEREST RATES
INTERNATIONAL BANK
INTERNATIONAL TELECOMMUNICATIONS
INTERNATIONALIZATION
JOINT VENTURE
MACROECONOMIC POLICIES
MARKET EFFICIENCY
MARKET SHARE
MARKETING
MATERIAL
MICROFINANCE
MIGRATION
MOBILE ACCESS
MOBILE BANKING
MOBILE PHONE
MOBILE PHONE ACCESS
MOBILE PHONE USERS
MOBILE PHONES
MOBILE SERVICE
MOBILE TELEPHONES
MOBILE TELEPHONY
MOBILE TRANSACTIONS
MONEY MARKET
MONEY TRANSFER
MONEY TRANSFERS
NETWORKS
OPEN ACCESS
PAYMENTS SERVICES
PHONE BANKING
PHYSICAL BANK
PUBLIC POLICY
RADIO
RAPID GROWTH
RESULT
RESULTS
SAVINGS
SAVINGS ACCOUNT
SAVINGS ACCOUNTS
SAVINGS BEHAVIOR
SEARCH
SERVICE PROVIDER
SERVICE PROVIDERS
SMALL BUSINESS
SMALL BUSINESS ENTREPRENEURS
SMALL ENTERPRISES
SOCIAL CAPITAL
SOCIAL VALUE
STORAGE DEVICE
TAX
TELEPHONE
TELLERS
TRADITIONAL BANK
TRANSACTION
TRANSACTION COSTS
TYPES OF CONTRACTS
UNIVERSAL ACCESS
USER
USERS
USES
WEALTH
WEB
WORLD DEVELOPMENT INDICATORS
Demombynes, Gabriel
Thegeya, Aaron
Kenya's Mobile Revolution and the Promise of Mobile Savings
geographic_facet Africa
Africa
Sub-Saharan Africa
East Africa
Kenya
relation Policy Research working paper ; no. WPS 5988
description The mobile revolution has transformed the lives of Kenyans, providing not just communications but also basic financial access in the form of phone-based money transfer and storage, led by the M-PESA system introduced in 2007. Currently, 93 percent of Kenyans are mobile phone users and 73 percent are mobile money customers. Additionally, 23 percent use mobile money at least once a day. New potential for mobile money has come with the rise of interest-earning bank-integrated mobile savings systems, beginning with the launch of the M-KESHO system in March 2010. The authors examine the mobile savings phenomenon, using data collected in a special survey in late 2010. They show that the usage of bank-integrated mobile savings systems like M-KESHO remains limited and largely restricted to better-off Kenyans. However, what the authors term "basic mobile savings" -- the use of simple mobile money systems as a repository for funds -- is widespread, including among those who are otherwise unlikely to have any savings. Holding other characteristics constant, those who are registered for M-PESA are 32 percent more likely to report having some savings.
format Publications & Research :: Policy Research Working Paper
author Demombynes, Gabriel
Thegeya, Aaron
author_facet Demombynes, Gabriel
Thegeya, Aaron
author_sort Demombynes, Gabriel
title Kenya's Mobile Revolution and the Promise of Mobile Savings
title_short Kenya's Mobile Revolution and the Promise of Mobile Savings
title_full Kenya's Mobile Revolution and the Promise of Mobile Savings
title_fullStr Kenya's Mobile Revolution and the Promise of Mobile Savings
title_full_unstemmed Kenya's Mobile Revolution and the Promise of Mobile Savings
title_sort kenya's mobile revolution and the promise of mobile savings
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120306084347
http://hdl.handle.net/10986/3275
_version_ 1764386717246160896