Have Mobile Money Operators Bridged Financial Inclusion and Quality of Services: Are the Previously Unbanked Really Banked Now?

Abstract

The advent of mobile money operators has significantly transformed the financial inclusion of previously unbanked persons. However, the quality of products and services offered by Mobile Money Operators (MMOs) has barely been evaluated. National Financial Inclusion Strategy 1 (NFIS 1) 2016 -2020 took an access focused approach to financial inclusion to facilitate access to formal financial products and services by the marginalised and vulnerable groups. The paper sought to evaluate the quality of products and service delivery of mobile money operators in Zimbabwe measured by affordability, interoperability, convenience, consumer protection, financial education, indebtedness and choice. The paper sought to assess the impact of MMOs on financial inclusion amongst previously unbanked population and identify the challenges and limitations of MMOs in bridging quality of service offered in comparison to traditional banking services. The study utilised a qualitative methodology to establish the perspectives of the SMEs in Gweru retail sector CBD on the quality of mobile money operators who utilise either OneMoney or Ecocash. The study utilised purposive sampling technique to identify SMEs. A face-to-face interview was employed to gather these perspectives. The findings reveal that there are varying levels of quality amongst the MMOs, with significant disparities in accessibility, user experience, transaction safety and customer support services and network services. The MMOs are still lacking in range of services as compared to traditional banks, therefore; there is need for stricter regulatory oversight and industry standards to improve quality to meet the need of the previously unbanked population. The improvement of quality of MMOs would unlock the full potential of financial inclusion, fostering economic empowerment and poverty reduction amongst the previously unbanked population.