Access to financial services: The case of the ‘Mzansi’ account in South Africa

Kostov, Philip; Arun, Thankom; Annim, Samuel Kobina

doi:10.1016/j.rdf.2015.04.001

Cited by 50 publications

(27 citation statements)

References 17 publications

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“…The use of mediating analysis examines the items that indicate the latent variables. As per the notion of Claessens (2006), accessibility of finance demonstrates the availability, reliability, flexibility, and continuity of financial services (Kostov, Arum, & Annim, 2015). Thus, in the study, accessibility, availability, and accommodation of credit providers indicate access to finance.…”

Section: Methodsmentioning

confidence: 75%

The mediating effect of microfinancing on access to finance and growth of microenterprises: evidence from the Philippines

2019

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Undoubtedly, microenterprises play a critical role in the development of the economy. Comprising a dominant share in the industry, microenterprises help to alleviate poverty and unemployment. However, the growth of microenterprises remains a global challenge. A number of scholars have attributed the growth of microenterprises to accessibility of finance; however, microfinancing is equally significant in the initiative of owners to expand. This study aims to examine how microfinancing mediates the effect of access to finance on the growth of microenterprises. A survey result from a dataset of 582 microenterprises from the Philippines was used for correlation, regression, and mediation analyses. The results suggest that the impact of access to finance on the growth of microenterprises is heightened when microfinancing is maximized. However, the owners' preferences toward internal financing limit the ability to expand. Thus, the issue of stagnation is a result of the owners' isolation to external financing. The results highlight the need for a more holistic approach to enterprise growth than merely facilitating access to finance. The study recommends aspects such as literacy and competitiveness as factors other than access to capital as enablers of growth. The results may challenge policymakers to enhance the existing policy frameworks further and provide more skills-enhanced income opportunities. Further, an experimental research using an intervention may help discover how to overcome stagnancy of micro and small firms.

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Section: Methodsmentioning

confidence: 75%

The mediating effect of microfinancing on access to finance and growth of microenterprises: evidence from the Philippines

2019

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“…This is consistent with the results of Kostov et al . (2015) on the impact of Mzansi accounts, and those of Yenkey et al . (2015) for M‐Pesa in Kenya.…”

Section: Mobile Money: Theory and Evidencementioning

confidence: 87%

“…Kostov et al . (2015) find that South Africa's experiment with Mzansi (low‐cost, ‘pre‐entry’) bank accounts did not generate one‐way traffic towards formal accounts; and there was a significant increase in dormant accounts following the initial take‐up. Financial inclusion in China has been achieved largely through the informal sector (Fungáčová and Weill, 2015).…”

Section: Financial Inclusion and Exclusion And Their Determinantsmentioning

confidence: 99%

Mobile Money, Financial Inclusion and Development: A Review With Reference to African Experience

Ahmad¹,

Green²,

Jiang³

2020

Journal of Economic Surveys

122

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Survey literature on mobile money and its contribution in promoting financial inclusion and development, with a focus on sub‐Saharan Africa. We use taxonomic, descriptive and analytical methods to evaluate the state of knowledge in the area. We analyse how mobile technology in general may contribute to economic development and financial inclusion in theory and practise. We explain the mechanics of mobile money using Kenya's M‐Pesa as a canonical example; and consider whether the literature has fully established the potential economic impact of mobile money especially its contribution to financial inclusion. We also consider market structure, pricing and regulatory implications of mobile money. We conclude by highlighting issues that require further investigation: the take‐up of mobile money; mobile money and financial inclusion; substitutability between mobile money and conventional finance; and regulatory structures for institutions providing mobile money services.

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“…There are several works of literature discussing factors influencing access and use of financial services (Aterido et al, 2013;Fungáčová & Weill, 2014;Ghosh & Vinod, 2017;Kostov et al, 2015;Ouma et al, 2017;Zins & Weill, 2016). Previous evidence proved that access and use of the services of formal financial institutions had contributed positively to economic growth and social development on both individual and corporate scale (Chauvet & Jacolin, 2017;Han et al, 2013;Kim et al, 2018;World Bank, 2014).…”

Section: Introductionmentioning

confidence: 99%

Factors Influence Financial Inclusion: Evidence from Indonesian Micro Data

Susilowati¹,

Leonnard²

2019

Etikonomi

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In order to increase access to formal financial institutions, the Indonesian government has issued various national strategies. However, Indonesia's inclusive financial index is still under other ASEAN countries. Therefore, in this study, we investigate the factors that influence financial inclusion in Indonesia. The microdata from global findex 2014 was carried out in this study by using binary logistic regression analysis. The finding indicates that there is a significant positive relationship between individual characteristics, including financial inclusion, constraints to financial inclusion, utilization of financial services motivation, and loan sources. Since the main targets of financial inclusion are the poor, this finding becomes an essential proposition for policies in the banking sector, that besides the factors of gender, age, education, and type of jobs, income is the primary factor that influences access and utilization of financial services. Mainly regarding loans, increased income will increase the opportunities of the poor to getting loans because only high-income groups have collateral in applying for loans.Abstrak. Untuk meningkatkan akses ke lembaga keuangan formal, pemerintah Indonesia mengeluarkan berbagai strategi nasional. Namun, indeks keuangan inklusif Indonesia masih di bawah negara-negara ASEAN lainnya. Oleh karena itu, dalam penelitian ini, kami menyelidiki faktor-faktor yang mempengaruhi inklusi keuangan di Indonesia. Data mikro dari global findex 2014 dianalisis dalam penelitian ini dengan menggunakan analisis regresi. Hasil penelitian menunjukkan bahwa terdapat hubungan positif yang signifikan antara karakteristik individu, inklusi keuangan, kendala inklusi keuangan, penggunaan motivasi layanan keuangan, dan sumber kredit. Karena target utama dari inklusi keuangan di Indonesia adalah kelompok masyarakat miskin, maka hasil penelitian ini menjadi masukan yang penting bagi kebijakan di sektor perbankan, bahwa selain faktor-faktor gender, usia, pendidikan, dan jenis pekerjaan, pendapatan menjadi faktor utama yang mempengaruhi keberhasilan inklusi keuangan. Khususnya mengenai kredit, peningkatan pendapatan akan meningkatkan peluang masyarakat untuk mendapatkan pinjaman, karena hanya kelompok berpendapatan lebih tinggi yang memiliki jaminan dalam mengajukan pinjaman.

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Access to financial services: The case of the ‘Mzansi’ account in South Africa

Cited by 50 publications

References 17 publications

The mediating effect of microfinancing on access to finance and growth of microenterprises: evidence from the Philippines

The mediating effect of microfinancing on access to finance and growth of microenterprises: evidence from the Philippines

Mobile Money, Financial Inclusion and Development: A Review With Reference to African Experience

Factors Influence Financial Inclusion: Evidence from Indonesian Micro Data

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