Institute for Money, Technology & Financial Inclusion

This paper explores the relationship between the usage of mobile technology for loan repayment and client’s behavior towards mobile value storage, utilizing as a case the experience of micro-borrowers already using the m-banking loan repayment service offered by one rural bank in the Philippines. The hypothesis is that the usage of mobile technology for loan repayment can lead to an increase in client confidence in mobile money and thus bring about wider adoption of other mobile banking services, particularly of a savings mechanism that allows borrowers to save in the bank via the mobile phone. The study seeks to gain insights on how mobile banking fits into the perceptions, values and uses that are attached to money and other forms of wealth among the poor as well as to review how clients tend to move to other uses of mobile money, particularly in storing and saving value. The paper also uses empirical data to suggest how mobile money applications might be designed to better suit the needs and interests of poor savers.