Mobile money: a gateway to achieving financial inclusion in Ghana

: While emerging studies on mobile financial inclusion have focused on the factors driving the adoption of mobile money, little evidence exists on how the service is facilitating the use of formal financial services. Using the World Bank Findex data, we estimate the effect of mobile money adoption on the use of formal accounts, savings, and credit in Ghana. The results of the recursive bivariate probit analysis showed a significant symbiotic relationship between mobile money adoption and the probability of operating a formal account. Mobile money adoption has a positive effect on savings and access to credit but does not affect the avenues to savings and obtaining credit respectively. Mobile money users save in their wallet and obtain microcredit through the mobile money platform but not through formal channels. These findings reinforce the hypothesis that mobile money is the surest financial tool for achieving universal financial inclusion in developing countries. regressors (Wilde, 2000). The error terms ( v i and ε i ) are assumed to be distributed bivariate normal with a mean of zero and a constant variance, and corr( v i , ε i ) = ρ . The error terms capture all the other factors that affect ownership of MoMo and access to formal financial services in Ghana. The estimates of the probit model are consistent when ρ = 0 or are statistically insignificant.