Banking on mobile

: financial inclusion through FinTech : the Hidroelétrica de Cahora Bassa : IPO Case Study

Abstract

Africa ranks as the lowest region in terms of financial inclusion (Beck & Cull, 2015). There is a wave of African countries implementing mobile money schemes (via USSD technology) as a way of tackling financial exclusion, given that financial inclusion is strongly linked to poverty (Demirguc-Kunt, et al., 2014; Robert, Tilman, Nina, 2014; Anarfo & Abor, 2020). This study looks at one such innovative example in Mozambique, where the use of similar technology allowed the unbanked to participate in a first-of-its-kind equity market transaction in the form of the HCB IPO. This thesis uses the case study format to discuss the extent to which using a USSD platform helped reach and include the unbanked and whether such as initiative was effective in stimulating participation in the local stock exchange. The case study allows students to explore and discuss the intersection of fintech and financial inclusion through the lens of the latest trends in developing countries. Overall, the case study suggests that the use of mobile money schemes had a positive impact on the reach and inclusion of the transaction. And, while it did help increase the number of investors in the Mozambique Stock Exchange, it was not as effective at increasing trading volume.

Date of Award	6 Jul 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	João Andrade (Supervisor)