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Evaluating The Impact of Mobile Money on Social Economic Status of Rural and
Urban Malawians and Its Implication on National Economic Status
Contents
Chapter 1: Introduction...............................................................................................................................2
1.1. Background.......................................................................................................................................2
1.2. Problem Statement...........................................................................................................................2
1.3. Research Questions..........................................................................................................................2
1.4 Aims and Objectives..........................................................................................................................2
1.5. Significance of the Research.............................................................................................................2
1.6. Research Methodology.....................................................................................................................3
1.7. Questionnaires.................................................................................................................................3
1.8. Interviews.........................................................................................................................................3
1.9. Project Plan, Resources and Constraints...........................................................................................3
Chapter 2: Literature Review.......................................................................................................................4
2.0. Introduction.................................................................................................................................4
2.1. Mobile Money.............................................................................................................................4
2.3. Conclusions..................................................................................................................................4
Chapter 4: Data Analysis and Methodology................................................................................................5
Chapter 5: Results and Interpretations........................................................................................................6

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Chapter 1: Introduction
1.1. Background
Malawians are actively using mobile money accounts and such transactions have a corresponding
important effect on society. According to the Reserve Bank of Malawi National Payment Systems Report
(2020), there were 7.6 million subscribers for non-bank mobile money services by end of fourth quarter of
2020. In the same vein, subsequent activity rate for mobile money subscribers increased to 72.3 percent
by December 2020 from 62.1 percent in September 2020.

1.2. Problem Statement

The unbanked population of the world has a significant opportunity for financial inclusion through mobile
money services due to increasing levels of mobile penetration (Jack & Suri, 2014). An understanding of
the actual impact of mobile money usage also needs to guide decision making and strategy formulation by
industry regulators, financial and telecommunication companies in advancing financial inclusion. Mobile
money and digital wallets offer an innovative solution to fill the financial infrastructure gap and alleviate
frictions related to the limited use of formal financial services.

1.3. Research Questions

The research will be guided by the following questions:

1. What are the underlying economic and regulatory environmental factors that have led to
the increase in mobile money use over the years
2. How how these factors have achieved its sustainability?
1.4 Aims and Objectives
The aims and objectives of the research are as follows;
1. To find out the positive and adverse impacts of mobile money on social economic status
of rural and urban Malawians and the national economic status at large.
2. To establish economic and regulatory environmental factors that have led to substantial
increase in mobile money subscription over the years and its sustainability.
.

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1.5. Significance of the Research

Malawi as a nation needs to properly assess the impact from subscriber perspective with
reference to their geographical locations. Mobile money services provide an easily accessible
mode of transacting that assists in addressing challenges that relate to formal banking services.
According to Buckley (2015), many Malawians in rural areas have never used banks and
consequently do not trust financial services to take up mobile money.
1.6. Research Methodology
The research will utilize both primary and secondary data with use of questionnaires, interviews
and literature review. This multi-method approach of carrying out research is referred to as
triangulation (Bell, 1999). Questionnaires have been prioritized because the nature of the
problem requires adequate data from mobile money subscribers mainly individuals. Random
interviews will also be utilized when dealing with mobile money agents and business owners
operating mobile money accounts.

1.7. Questionnaires
This research is based on a mixed methods design because it will utilize both qualitative and
quantitative approaches. Questionnaires will be used to collect facts and opinions on the social
economic impact of mobile money usage on individuals and businesses in rural and urban areas.
The data will also then be used to determine the level at which such personal and business
impact contributes to the overall national economic development.
1.8. Interviews
In qualitative interviews, the researcher conducts face-to-face interviews with participants,
telephone interviews, or engages in focus group interviews with six to eight interviewees. These
interviews involve unstructured and generally open-ended questions that are few in number and
intended to elicit views and opinions from the participants (Creswell, 2014).
1.9. Project Plan, Resources and Constraints
This section presents the plan, schedule, costs and qualifications for performing the proposed
research and achieving the stated objectives. The research will give a background on the subject
matter and relate it to its current status in the industry and overall economy. Social economic
impact of the mobile money services to the rural and urban population and national economy will
then be evaluated from the findings.

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Chapter 2: Literature Review
2.0. Introduction

Mobile money has greatly boosted financial access and financial inclusion for previously
underserved sociodemographic categories including the poor and rural inhabitants United Nation
(2015).. This review will show how mobile money has influenced economy based on various
literature
2.1. Mobile Money

Mobile money users love the service since it allows them to pay quickly and securely even in
remote regions. With so many agents nationwide, customers may easily trade and save using
their mobile money accounts regardless of their location or socioeconomic position. Mobile
money has dramatically changed consumer remittance habits. Using mobile money to pay has
the potential to stimulate economic activity.( Donovan, K. 2012).

An efficient payment system directly influences the efficiency of trade and the rate of economic
growth. Financial inclusion is critical in reducing rural poverty by enabling poor people to save,
borrow, and protect themselves against a variety of risks. (Oluwatayo, I, 2012).

Mobile money supports cashless economies and gives unbanked access to financial services. It
helps them manage their cash flow, plan their finances, and save more. Mobile money use is
quickly increasing in poor countries like Malawi.
2.3. Conclusions

The study project will emphasize the social economic effect of mobile money use among rural
and urban Malawians as well as the overall national economic transition.

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Chapter 4: Data Analysis and Methodology

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Chapter 5: Results and Interpretations

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References
Bell, J. (1999). Doing your Research Project. (3rd Edition). Maidenhead, UK: Open University

Press.

Buckley, R., Greenacre, J. & Malady, L. (2015). The Regulation of Mobile Money in Malawi.

Global Studies Law Review. Global Stud L. Rev.435-497

https://openscholarship.wustl.edu/law_globalstudies/vol14/iss3/7.

Creswell, J.W. (2014). Research Design: Qualitative, Quantitative and Mixed Methods

Approaches, (Fourth Edition). London: Sage Publications Ltd

Lal, R. & Sachdev, I. (2015). Mobile Money Services-Design and Development for Financial

Inclusion. Working Paper 15-083, Harvard Business School. Available at:

http://www.pubmed.ncbi.nlm.nih.gov/26539987/ [accessed 20 January 2022]

Oluwatayo, I. (2012). Mobile Phones as Mobile Banks and Credit Outlets: The Experiences of

Farming Households in Rural Southwest Nigeria. International Journal of Computing and

ICT Research, Vol. 6 Issue 1, pp 52-59. [Online] Available:

http://www.ijcir.org/volume6-number1/article6.pdf. (October 14, 2013)

United Nation (2015). Sustainable Development Goals. (SDGs). New York, NY: United Nations.

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Biography

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