Increasing mobile banking use among rural populations in Ghana

We will test three different modes of providing information, training and incentives on mobile banking to the existing banking clients to assess their knowledge, take-up, and usage of the mobile banking platform. We will also compare different ways to provide information and different monetary incentives in encouraging the adoption of mobile banking services. We plan a cluster randomization design with 128 microfinance groups located in rural communities equally distributed into four control/treatment arms (32 communities under each arm). The details of the interventions are as follows:

1. Control group (C): Clients in this group will not receive any encouragement to use mobile banking. However, they continue to be free to use it.

2. Personal incentive (T1): Clients in this group will receive a one-time small monetary incentive if they carry out a mobile banking transaction (withdrawal or deposit to/from the account) within one month of the intervention.

3. Peer-led training + Peer incentive + Personal incentive (T2): The microfinance group leader will be trained to use mobile banking. The group leader would then be asked to train the rest of her microfinance group members on mobile banking. The group leader (trainer) would also receive an incentive for each member (trainee) of her microfinance group who completed a mobile banking transaction (deposit to a bank account or withdrawal from a bank account). Each member of the microfinance group, would receive an individual monetary incentive, like T1 above, if they carry out a mobile banking transaction (withdrawal or deposit to/from their accounts) within a month of intervention.

4. Peer-led training+ consumer protection training + peer incentive + personal incentive (T3): The microfinance group leader will be trained to use mobile banking and also receive a training covering consumer protection and fraud awareness. The group leader would then be asked to train the rest of her microfinance group members on mobile banking and consumer protection. The group leader (trainer) would also receive an incentive for each member (trainee) of her microfinance group who completed a mobile banking transaction (deposit to a bank account or withdrawal from a bank account). Each member of the microfinance group, would receive an individual monetary incentive, like T1 above, if they carry out a mobile banking transaction (withdrawal or deposit to/from their accounts) within a month of intervention.

2021-05-20

2021-07-09

The final list of outcomes that will be analysed will be defined in a pre-analysis plan and the pre-analysis plan will be lodged before the research team receives or analyses the endline data. The primary outcomes will include measures of the following:
• Information retention and understanding of how to use mobile banking.
• Trust in and perceptions around mobile banking services and OISL.
• Willingness to pay to use mobile banking services (versus go to a bank).
• The value placed on different dimensions of banking services, including; the cost of transactions, range of services offered, interaction with banking staff, perceptions of safety, trust and convenience.
• Sign up of customers to use OISL mobile banking services. (high-frequency admin data)
• Number and size of mobile banking transactions and saving account balance. (high-frequency admin data)
• Total savings of all types

These outcomes will be disaggregated by gender, so we can ensure we are able to increase knowledge and use of mobile banking services amongst women in particular.

The study is a clustered randomised control trial that examines different modes of promoting mobile banking use among women who are microfinance loan clients for a mobile banking service provider in Ghana. As such, 128 microfinance groups will be randomly allocated to a study treatment arm. There will be 32 groups in each treatment arm and approximately 5 women per group. Participants will receive the intervention information appropriate to the arm they are assigned to. Mobile banking admin data from baseline and then subsequent months will be shared with the research team. Participant account activity will be monitored for the month following the intervention. In the treatment arms, the data will be used to determine whether the participant’s activity has met the criteria for an incentive payment to be paid. At endline, those in the treatment conditions who have met the criteria will receive the corresponding incentive payment. At endline, participants will be surveyed in addition to having their admin data analysed.

Randomisation to treatment arm will be done using the STATA statistical software. The randomisation procedure will be documented such that it can be reproduced if necessary.

microfinance groups

Yes

128 microfinance groups

512 microfinance clients (4 per group)

32 microfinance groups (clusters) per treatment arm

Pre analysis plan

pap amendment

How can we encourage the adoption of digital financial services? We use an RCT with 115 microfinance groups in Ghana to understand the respective roles of individual incentives to adopt a technology and endorsement of the technology by a peer. We study mobile banking services, a technology which allows deposits and withdrawals between a mobile phone and bank account, dramatically lowering the transaction costs of saving in the bank account. We find that while individual incentives increase adoption of mobile banking services by 60% (6 percentage points) over 6 months, adding endorsement by a peer doubles the impact of the incentives alone. Peer endorsement significantly enhances confidence in dealing with fraud and increases peer support in using mobile banking. Those encouraged to adopt mobile banking by a peer save 30% ($4) more in the linked bank account 6 months later. Our study highlights the power of peers in encouraging technology adoption and facilitating formal financial inclusion.

Riley, E., Shonchoy, A. S., & Osei, R. D. (2025). Incentives and endorsement for technology adoption: Evidence from mobile banking in Ghana. Journal of Development Economics, 176, 103511.

https://doi.org/10.1016/j.jdeveco.2025.103511