Empower The Unbanked

Segment: Your paragraph text

Financial Inclusion for Nigeria through

Mobile Money Solutions

Researcher: Bikash Kumar Dash (EJ22DXB016)

Industrial Mentor: Manav Mehra, Chief Business Enabler Officer, Network International, Dubai
Academic Mentor: Prof. Umesh Kothari, SP Jain School of Global Management, Dubai
 Topics
Executive Summary Research Outcome & Scope

Background Survey & Interview Analysis

Research Objective Academic Frameworks

Research Methodology Timelines

Literature Reviews Conclusion

 Executive Summary
• Objective:

⚬ To comprehensively understand the adoption and impact of mobile money services in

Nigeria.

• Strategy:
⚬ Conducted a survey
⚬ Analyzed usage patterns, satisfaction levels, concerns, and preferences.
⚬ Factors influencing mobile money adoption.
⚬ Interviewed industry experts
⚬ Data analysis

• Focus:
⚬ Demographics
⚬ Usage Patterns
⚬ Future Preferences
 Background
"Limited access to formal financial services among unbanked and
underbanked populations in Nigeria.”

• Low Banking Penetration:

⚬ Only 45% of adults have bank accounts.
• Mobile Money Potential:
⚬ Growing mobile money usage as an alternative.
• Challenges:
⚬ Fraud
⚬ High transaction costs
⚬ Poor infrastructure

"Addressing these challenges is crucial for achieving widespread financial

inclusion in Nigeria."
 Quantitative Key
Aspects
Quantitative analysis of mobile money payments by
customers involves the systematic examination and
interpretation of numerical data related to customer
transactions, behaviors, and preferences within the mobile
money ecosystem. Here are key aspects to consider when
conducting quantitative analysis in this context

Transaction volume
Frequency of Use
Transaction types
Transaction ticket Size
Demographics

https://www.statista.com/statistics/1270456/
distribution-of-pos-payment-methods-in-nigeria/
 Problem Solution
• Mobile Banking Expansion:
⚬ Facilitate the expansion of mobile banking services.
⚬ Improve mobile infrastructure and accessibility.
• Enhanced Security Measures:
⚬ Develop robust security measures to combat fraud.
⚬ Reduce transaction costs to make services more affordable.
• Regulatory Frameworks:
⚬ Implement effective regulatory policies.
⚬ Encourage competition among mobile money operators.
• Financial Literacy Programs:
⚬ Promote financial education to raise awareness.
⚬ Empower individuals with knowledge about available services.

"These solutions aim to increase financial inclusion, reduce poverty, and stimulate
economic growth in Nigeria."
 Research Objective
This research aims to comprehensively explore the landscape of mobile money in Nigeria,
uncovering key insights into adoption patterns, user behavior, challenges, and opportunities

The key objective of this study is to provide a nuanced understanding of how mobile money services can be
optimized to benefit both users and the broader Nigerian economy.
• Understand how Mobile Money can be optimized
• Identify the factors that drives mobile services
• Asses the banking needs of the consumers
• Identify the market growth for future preferences

This research is significant as it provides a comprehensive understanding of the current state of mobile money in
Nigeria, addressing key questions and challenges faced by users, providers, and policymakers. The insights
generated will guide stakeholders in optimizing mobile money services, fostering financial inclusion, and driving
economic growth.
Research Methodology
This study employs a mixed-methods research approach,
combining both quantitative and qualitative methods to
provide a comprehensive understanding of mobile money
adoption in Nigeria.

The research adopts a positivist stance, aiming to establish

empirical relationships and patterns in mobile money
adoption.

Both primary and secondary data sources will be utilized to

gather information on mobile money adoption, including
surveys, interviews, and existing literature.
 Literature Review - Summary
KEY VARIABLES:
Mobile Money Usage: Several studies delve into mobile money
usage, emphasizing its importance as an emerging financial
service in Nigeria.
Financial Innovations: The impact of financial innovations on the
performance of Deposit Money Banks (DMBs) is a recurring
theme, emphasizing the significance of modern banking
technologies.
Mobile Money Acceptance: Determinants of mobile money
acceptance, such as perceived usefulness and ease of use, are
explored in the context of technology adoption.
Financial Inclusion: The role of mobile money in driving financial
inclusion is a central focus, with attention to adoption rates,
infrastructure development, and economic benefits.
GAP VARIABLES:
Regulation: Several studies suggest that exploring the regulatory
environment and its impact on mobile money adoption and
performance could be a valuable avenue for future research.
Technology: The role of technology and its influence on mobile
money services, including factors like network accessibility and
digital infrastructure, is noted as a potential gap area.
Customer Education: The need for understanding the role of
customer education in mobile money adoption and financial
inclusion is highlighted.
Competition Among Operators: The competitive landscape among
mobile money operators and its effects on service quality and
innovation could be explored in future research.
Banked and Unbanked Reasons
Average Value from 5 (Very High) to 1 (Very low)

Critical Factors for Bank Account Factors contributing to no Bank Account

 Qualitative Reseacrh

In-depth interviews conducted with the key stakeholders, i.e. mobile money
service providers, regulators, and industry experts. These semi-structured
interviews provided qualitative insights into the challenges, opportunities, and
future trends in mobile money adoption.

To understand the consumer behavior and adoption of the Mobile Money through:

Focus Groups
Social and culture factors
Customers view on Mobile Money Operators
Future Expectations
Benefits of Mobile Money acceptance
 Challenges and Oppurtunities Articulated

The Leading mobile money operator stated, Network connectivity issues indeed present a significant
obstacle to the seamless operation of mobile money transactions, particularly in remote or underserved
regions. To tackle this challenge effectively, substantial investments in network infrastructure are imperative.
These investments are essential for bridging the digital divide and ensuring that mobile money services can
reach even the most remote areas, thus enhancing financial inclusion.
Network Connectivity

Personal from Central Bank of Nigeria mentioned Security has indeed emerged as a primary concern,
underlining the critical significance of establishing and maintaining trust and confidence among users
within the mobile money ecosystem. It's evident that users expect their financial transactions to be
secure and their personal information to be protected.
Security Concerns
 Challenges and Oppurtunities Articulated

The Financial institution representative mentioned The potential for mobile money to drive financial
inclusion, especially in rural and underserved areas, is indeed a prominent theme. It resonates with the
overarching objective of enhancing access to financial services and positively impacting the lives of
unbanked and underbanked populations. Our efforts are in alignment with this vision, and we recognize the
transformative role that mobile money can play in reaching those who were previously excluded from the
Financial Inclusions formal financial system

The mobile network operator representative mentioned, We understand that a seamless and easy-to-
navigate platform not only facilitates financial transactions but also builds trust and loyalty among
our users. By continuously refining and improving the user experience, we aim to maintain high
levels of satisfaction and ensure that our mobile money services remain accessible and beneficial to
all Nigerians.
User Centric Approach
 Challenges and Oppurtunities Articulated

The Financial institution representative mentioned Banks fully acknowledge the strategic significance of
collaborating with local businesses and government entities to foster the growth of mobile money adoption.
These partnerships serve as a catalyst for innovation and localized solutions that cater to the unique needs of
various communities.

Partnership & Collaborations

The Central Bank Representative recognize the pivotal role that consumer education plays in
fostering trust and driving mobile money adoption. Clear and comprehensive communication is key
to dispelling misconceptions and ensuring that users are well-informed about the benefits, security
measures, and responsible usage of mobile money services
Consumer Education
 Quantitative Research
A structured survey questionnaire will be administered to a
sample of mobile money users in Nigeria. The survey will collect
quantitative data on usage patterns, satisfaction levels, concerns,
and demographic information.

The survey questionnaires will be designed considering below data points:

• Survey Timing upto 10 minutes long to complete by the participants

• Sample size of upto 100 participants to respond through online link
• Questionnaires will be target to address:
⚬ Age
⚬ Usage
⚬ Purpose with the Age category

Once the data collected the data analysis methods including descriptive (summarizing data), diagnostic (identifying
causes), predictive (making future predictions), and prescriptive (providing actionable recommendations) approaches
will be followed.
 Research Questions
"How can mobile money services be effectively leveraged to promote financial inclusion and
enhance the overall financial ecosystem in Nigeria?"

Metric Question

Age Distribution Age Group: 0-18, 18-35, 35-50, 50 and above

Usage Frequency Monthly/ Weekly/ Daily/ Rarely/ Never

Purpose Money Transfer, Paying Bills, Purchasing Goods, Others (Please Specify)

Challenges How satisfied are you with the mobile money services you use?

Would you be using additional mobile financial services such as loans,

Future Preference insurance, or investment opportunities through your mobile money
provider
Survey Data

Age Distribution Education qualification

Survey Data

Usage Frequency Purpose

Survey Data

Monthly Txn Amount Mobile Usage satisfaction

Survey Data

Satisfaction Factors Challenges

Survey Data

Future Preferences Improvements

Survey Data Analysis
 Survey Data Analysis - Hypothesis
Testing

Hypothesis 1: Age and Frequency of Mobile Money Usage

Null Hypothesis (H0): Age does not have a significant effect on the frequency of mobile money usage among
respondents in Nigeria.

Alternative Hypothesis (H1): Age significantly influences the frequency of mobile money usage among
respondents in Nigeria.

p-Value = 0.0048

This result has implications for mobile money service providers and policymakers in Nigeria. They should
consider the age-related variations in mobile money usage when designing marketing strategies, user
interfaces, and promotions to cater to different age groups effectively.
 Survey Data Analysis - Hypothesis
Testing

Hypothesis 2: Gender and Primary Reasons for Mobile Money Usage

Null Hypothesis (H0): Gender has no association with the primary reasons for mobile money usage among
respondents in Nigeria.

Alternative Hypothesis (H1): Gender is associated with the primary reasons for mobile money usage among
respondents in Nigeria.

p-Value = 0.0002

For service providers and policymakers, this result highlights the importance of considering gender-specific
preferences and needs when promoting and designing mobile money services. Tailoring marketing campaigns
and features to different gender groups can lead to more effective and inclusive mobile money solutions.
 Survey Data Analysis - Hypothesis
Testing

Hypothesis 3: Educational Background and Average Monthly Transaction Amount

Null Hypothesis (H0): Educational background does not affect the average monthly transaction amount among
mobile money users in Nigeria.

Alternative Hypothesis (H1): Educational background significantly impacts the average monthly transaction
amount among mobile money users in Nigeria.

p-Value = 0.772

Service providers and policymakers should consider that educational background, in this context, does not
appear to be a significant factor in determining transaction amounts. However, it's essential to remain open to
other potential factors or variables that may influence transaction amounts, and further research can explore
these aspects.
 Survey Data Analysis - Hypothesis
Testing

Hypothesis 4: Satisfaction Levels and Concerns

Null Hypothesis (H0): There is no relationship between satisfaction levels and concerns reported by mobile
money users in Nigeria.

Alternative Hypothesis (H1): Satisfaction levels are related to the concerns reported by mobile money users in
Nigeria.

p-Value = 0.0065

Service providers and policymakers should consider addressing these concerns to enhance user satisfaction
and improve the overall mobile money experience in Nigeria. Further analysis or research can delve deeper
into the nature of this relationship and identify specific areas for improvement.
 Discovery
20th Jan 2024

Budget Approval
04th Mar 2024

Timelines- Development and Testing

Short Term 20th Jun 2024

Pilot Implementation
06th Jul 2024

Go To Market - Live
10th Jul 2024
 Expansion to urban areas
20th Aug 2024

Additional Features and Financial Services based in

future preferences

Timelines-
04th Nov 2024

Monitoring and Evaluations

Long Term 20th Jan 2025

Data Analytics and Insights

06th Jul 2025

Technology Innovation
10th Aug 2025
Academic Framework
Academic Framework
 Conclusion

Balanced gender distribution among mobile money users, with approximately

equal participation from both males and females. This suggests that mobile money
services have successfully transcended gender barriers

The dominance of the 18-34 age group among mobile money users aligns with
global trends, highlighting the youth's proclivity for adopting digital financial
solutions

Expanding agent networks and improving network connectivity in rural areas can
further enhance the accessibility of these services.

The findings indicate that mobile money services are widely adopted and
appreciated for their convenience and accessibility. However, users have expressed
legitimate concerns about security and transaction fees, suggesting areas for
improvement
Recommendations

Enhance Transparent Network Innovation and Financial

Security Fee Structures Infrastructure Service Literacy and
Measures Development Expansion User Education

Rural Data Privacy Leveraging

Regulatory
Financial and Protection Influencers and
Clarity
Inclusion Social Media
 Limitation and Future Scope

Limitations:

• Sample size is limited to 100 Users to capture the consumer behavior

• Focussed only in the country Nigeria, no other countries is been considered
• Recent development on the mobile money services are not included
• Limited representations, all the key stakeholders involved in mobile money eco system may
not be involved.

Future Scope

• Broader geographic coverage including diverse countries of Africa

• Comparative studies between Nigeria and other countries performance
• Policy and regulations
Thank You