Affiliation:
1. Department of Media and Technology Management, University of Cologne, Cologne, Germany
Abstract
Globally, high costs and loan defaults are the biggest threats to microfinance profitability and sustainability. This explorative study investigates how and to what extent mobile banking can foster the performance of microfinance institutions (MFIs). It expands the traditional dimensions of Transaction Cost Economics (TCE) by adding a loan default aspect. The study offers an explorative case study on “Urwego Opportunity Bank” (UOB) — Rwanda’s first commercial mobile service. Based on qualitative data collected through semi-structured interviews from the bank’s staff and its customers, the case shows how mobile banking allows for reducing transaction costs and loan defaults and thereby increases efficiency of MFIs. Further, it identifies high agent visibility, and sufficient savings to drive the usage of mobile banking — which, in turn, promotes the deployment of financial services to still unbanked parts of the population in emerging economies.
Publisher
World Scientific Pub Co Pte Lt
Subject
Management of Technology and Innovation
Cited by
5 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献