Evaluating the Impacts of Mobile Money Remittances on Household Development: A Descriptive Study of Rural Ghana

Abstract

Like many financial technology innovations, mobile money has been cited to expand financial inclusion for a greater section of the public. However, there is limited knowledge on the traceable impacts of mobile money on remittances received as relating to rural households. Using a descriptive survey, this research analyzes data collected from 392 rural households. The findings indicate that to a very large extent, mobile money is facilitating the frequent flow of urban-to-rural remittances. Most importantly, mobile money is improving the well-being and livelihood of rural households by providing them with the opportunity to take care of family emergencies, invest in education, save towards future family expenses, cover health-related expenses, secure modern agricultural inputs, and invest in good housing.

The findings also indicate that poor network systems, lack of proximity to mobile money agents, fraudulent activities, and preference for cash systems are the major challenges rural households face in receiving mobile money remittances. The findings also highlight the need for mobile network providers to improve their network systems in rural areas in order to improve the reliability
of mobile money services.

Keywords: Mobile Money, Financial Inclusion, Digitl Financial Services, Payment, Development