IMTFI Research 2012 The Impact of Pure Mobile Micro-financing on the Poor Tonny Omwansa & Tim Waema...
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Transcript of IMTFI Research 2012 The Impact of Pure Mobile Micro-financing on the Poor Tonny Omwansa & Tim Waema...
IMTFI Research 2012
The Impact of Pure Mobile Micro-financing on the Poor
Tonny Omwansa & Tim WaemaUniversity of California, Irvine
5-7 December, 2012
MUSONI• Musoni (‘M’ for Mobile and ‘Usoni’ for future
or Mobile Future), see http://www.musoni.eu/index.php/media/videos
• The first MFI in the world to go 100% mobile• Cash-lite operations, but not branchless• Customers loans guaranteed within 72
hours• Benefits: lower risks, less paper work,
better customer service, easier and more accurate transaction tracking
• 2.5 years old, over 18,000 loans issued, 8,000 clients
• Uses M-Pesa [our definition of MM]
Objectives• To establish how the clients gauge
the socio-economic impact of utilizing technology-based financial services and if it drives them to consider using less cash in other transactions
• To establish and quantify the impact of cashless mobile micro financing on the lives of the poor clients, including the apparent shift from cash to e-money
Approach• Component of the capability approach
(conceptual framework): • Quant: Obtained 245 acceptable
questionnaires back• Qual: Will be doing FGDs and IDIs
FinalReport
Quant
Data
Qual
Data
ProgressReport
Design & Piloting
Aug 2012
Oct 2012
Dec/Jan Feb 2013
Demographics• Total of 245 respondents from 34 groups• Age• Min age – 21• Max age - 63;
• Education• High school - 45%• Primary school - 27%
• Marital staus• Married – 78%• Single – 21%
• Gender• Male – 45%• Female – 55%
Membership of MFI• Member of more than one MFI
before joining Musoni? 44%• Member of other MFI after joining
Musoni? 18%
Drop possibly attributed to Musoni’s motto:
“Musoni is best”, “I don’t need another MFI”
Other common reasons for choice
• Cheap/affordable• Easy to access credit• The loan interest is low• Good Service• Very efficient• Convenient• Faster to get credit• Quick response
• Cheap/affordable• Easy to access credit• The loan interest is low• Good Service• Very efficient• Convenient• Faster to get credit• Quick response
Musoni
Mpesa
Using M-Pesa for loans is better than cash because:
That they see it as “Money Saving” is significant
To many, M-Pesa serves to store small amounts of money
Avg: $40
How much money do you keep in Mpesa?
The 26% are interested in credit history offered by bank or lower ATM withdrawals (compared to M-Pesa)
Do you send some of the loan to the bank via Mpesa?
Why do you retain money in Mpesa?
Confirms need for services beyond money transfer, safety of Mpesa, …?
Key conclusions• There is evidence of appreciation of
the impact of cash-lite• There is desire to shift to cash-lite• There are barriers for BoP to make
the shift– Notably societal dependence on cash– Transaction cost for electronic money
• Pegging mobile money to a product used by BoP makes it easier for them to appreciate cash-lite!– They need to experience MM over time
to appreciate– Is that why Safaricom launched m-
shwari?