Mobile Financial Services at the Base of the Pyramid: A Systematic Literature Review: An Abstract

With an estimated 1.1 billion unbanked adults in the world, mobile financial services, including mobile money services are being used to increase access to low-cost financial services (Demirguc-Kunt et al. 2018). Although mobile financial services are growing at a dynamic and rapid pace, the share of adults (44%) in developing countries reported to using digital payments with mobile phones or the internet is still low (Demirguc-Kunt et al. 2018). There still remains a large percent of the population in BoP (base of the pyramid) markets with limited access to sustainable formal financial services like credit, savings, payment systems, insurance and pension (Ouma et al. 2017).

The growth and potential of mobile financial services in BOP markets is well documented in practitioner reports (e.g. GSMA- Mobile for Development report, World Bank- Global Findex reports, Deloitte- Leveraging digital to unlock the base of the pyramid market in Africa report). Mobile phones and the internet have given rise to a new generation of financial services, sparking a digital revolution. Although BOP market literature has mention that the mobile financial services process is becoming increasingly dynamic with benefits to many stakeholders, there has been little light thrown on mobile financial inclusion processes and outcomes. Hence, the main aim of this study is to conduct a systematic literature review and synthesize the literature on strategies to upscale utilitarian and hedonic benefits to all consumers at the micro, meso and macro levels – all stakeholders - to get a comprehensive understanding of mobile financial inclusion.

We employed a systematic literature review approach for this study as our data collection method. Systematic literature review (SLR) is a distinct and organized method to analyze and assess literature (Briner and Walshe 2014).

We have proposed a conceptual model to delineate mobile financial services usage in BOP markets. The model shows the factors that take place prior to mobile financial services usage among BOP consumers, as well as the usage experience and outcomes associated with MFS at the BOP. As such, this model serves as a visual representation of the previously discussed antecedents, usage experience, outcomes, and strategy. Additionally, we specify that the mobile financial services environment includes micro level household strategies, meso level firm strategies, and macro level national strategies. These micro, meso and macro level relationships require continuous re-adaptations amongst stakeholders for increasing dynamism in MFS.

Mobile financial services present an opportunity for financial inclusion and poverty alleviation. Consequently, understanding the antecedents, process and outcomes associated with their use and provision is key. Our conceptualization of the mobile financial services process and environment suggest that precursors impact mobile financial services usage which in turn impacts outcomes additionally elements of the micro, meso, and macro environment impact each of these elements.