Competition in Mobile Financial Services: Lessons from Kenya and Tanzania
Date
2016-12-15
Authors
Mazer, Rafe
Rowan, Philip
Journal Title
Journal ISSN
Volume Title
Publisher
LINK Centre, University of the Witwatersrand (Wits), Johannesburg
Abstract
Mobile financial services (MFS) are the main drivers of financial inclusion in
many developing countries, where they provide low-income consumers with access
to transfers, payments, and increasingly more complex products including credit,
savings, and insurance. MFS channels can provide the advantages of convenient,
secure, and cost-efficient product offerings to consumers. In several markets, MFS
have helped to significantly increase the portion of the population with access to
formal financial services. To promote both quality and diversity in MFS products,
and in turn financial inclusion, it is important to ensure a competitive ecosystem that
facilitates entry into the market, the development of innovative MFS products, and
high-quality, value-for-money services. This article aims to provide insights into the
role that effective competition and competition policy play in developing MFS, and
in promoting financial inclusion, using Kenya and Tanzania as case countries.
Description
Keywords
Citation
Mazer, R., & Rowan, P. (2016). Competition in mobile financial services: Lessons from Kenya and Tanzania. The African Journal of Information and Communication (AJIC), 17, 39–59. https://doi.org/10.23962/10539/21629