The issue of access to financial products has been a public policy issue since 2005 when the first FinScope Zambia study was conducted. The 2015 study indicated that 40.7% of adults were financially excluded. This article investigates the influence of mobile money on financial inclusion using urban Kitwe and Kalulushi as case studies. We employ an ethnographic methodology to understand the extent to which mobile money has encouraged the unbanked population to access financial products and services. The findings indicate that mobile money has a positive influence on financial inclusion. It is easier to open accounts with mobile money kiosks than with formal banks. Mobile money services are conveniently located where the unemployed, aged and other segments of the unbanked population are found. They use mobile money services to send and receive money, pay utility bills and purchase airtime. Since mobile money services positively influence financial inclusion in urban settings, we recommend that they should be made widely available in rural areas. Furthermore, there is need to increase financial education and knowledge about mobile money systems and operations across populations in both urban and rural areas.
Kabala, Edna; Mapoma, Rosemary; Nalutongwe, Chitimba; Muyani, Diana; and Lungu, John
"An Ethnological Analysis of the Influence of Mobile Money on Financial Inclusion: The Case of Urban Zambia,"
Zambia Social Science Journal: Vol. 7:
1, Article 4.
Available at: https://scholarship.law.cornell.edu/zssj/vol7/iss1/4