Using Mobile Phones as a Platform for Banking

Nicholas Economides and Przemyslaw Jeziorski's research project centers on the interoperability of Kenya's mobile banking system and its impact on financial access.  The researchers examine and assess the benefits of interoperability and the possibility of creating a regulatory mechanism that might impose interoperability. They investigate welfare losses implied by the present market structure, and they model both network adoption and network utilization to understand network diffusion and impact on consumer welfare under different scenarios.

Research Questions: 
  •        What factors determine the success or failure of a mobile banking platform?
  •       What are the different types of fees used in mobile banking networks?
  •       How might technical standards be defined when imposing interoperability?
  •       What balance can be struck between interoperability and incentives for market innovation and investment in network infrastructure?
Data Notes: 
  • This project relies on existing data from household surveys in Kenya, as well as supplier data from the country's mobile operators.