1. Jenny C. Aker, Tufts University Robert Asambobillah, Catholic Relief Services Kim Wilson, Tufts University March 2013 Aker, Asambobillah and Wilson Mobiles for Savings? Mobile Money and Savings in Ghana Mobiles for Savings? Mobile Money and Savings in Ghana Savings in Ghana Catholic Diocese of Wa

2. Savings in Ghana MechanismAdvantageRisk Under the mattressReadily available for emergencies Can be stolen, lost, burnt Savings clubs (SILCs)Safe, promotes group collaboration and can save larger amounts Isnt readily available for emergencies (share- out occurs at particular periods) Susu collecterEnforced savingsFees, theft RemittancesShare risk across different geographic areas High transaction costs to sending/receiving remittances (time, bus fare, etc) Aker, Asambobillah and Wilson

3. Mobile Money Savings in Ghana Allows users to send and receive money via simple SMS messages and codes Relatively secure (linked to phone number and PIN number) High mobile coverage in Ghana 60 percent of the population with coverage, 50 percent with access to a mobile phone M-money introduced since 2009 (five operators) Adoption and usage still low – 2 percent of the population Aker, Asambobillah and Wilson

4. Research Goals Can m-money can promote financial inclusion of the worlds poor, particularly those living in rural areas? If some of the barriers to m-money adoption are addressed, can it be used to: Provide cash transfers to extremely vulnerable populations? (Tufts and Concern Worldwide Niger) Facilitate savings within rural areas, either by allowing individual members of savings groups to save, facilitating savings among different savings or promoting savings objectives? Allow households to more easily receive remittances from migrants? (Aker, Clemens, Ksoll 2012) Research Questions Savings in Ghana Aker, Asambobillah and Wilson

5. Research Goals Target: Savings group members in four villages in the Jirapa district of Upper West region (Zaghe, Nyenvaare, Tigboro, Kuchen) Rural areas with mobile phone coverage, all within 10 km of Jirapa town (MTN m-money agent), part of CRS and Catholic Dioceses SILC program Four interventions provided (designed to partially address the barriers to m-money adoption) Each village received a slightly different combination of interventions Villages were randomly assigned to each intervention (fairness and limited differences between groups) Action-Oriented Research Savings in Ghana Aker, Asambobillah and Wilson

6. Research Goals Treatment 1: Mobile phone raffle. Five savings group members won a mobile phone via a public raffle. The concept of m-money and savings was discussed, but detailed information on the product and how to use it was not provided. Treatment 2: Mobile phone sensitization. Savings group members received a sensitization module on m-money. The training used posters with illustrations of a mobile phone, an explanation on the link between savings groups and mobile phones, and a short skit. Treatment 3: Mobile phone raffle plus sensitization. Five savings group members won received a mobile phone via a raffle, plus the sensitization program. Treatment 4: Mobile phone to group leaders plus sensitization. In this group, mobile phones were provided to the savings group leaders (presidents and treasurers) and members received the sensitization. All groups received a visit from the MTN mobile money agent and access to free m-money SIM (worth 1 cedi). Action-Oriented Research: Interventions Savings in Ghana Aker, Asambobillah and Wilson

7. Research Goals Action-Oriented Research: Sensitization Savings in Ghana Aker, Asambobillah and Wilson

8. Data 100% registration (163 individuals) Free SIM cards but time and willingness to give national health insurance ID card or voter ID card Open acceptance of the product 40% using the service Sending money to pay school fees Receiving money from migrants Saving money (especially after share-out) 8 Savings in Ghana Findings Aker, Asambobillah and Wilson

9. Data 9 Savings in Ghana Findings NYENVAARE Mobile raffle 56% use, 10% save KUCHEN Sensitization only 23% use, 2% save ZAGHE Mobile raffle + sensitization 33% use, all save TIGBORO Mobile to leaders + sensitization 33% use Kuchens usage is lower....but is it because of the sensitization only or because they are farther away from Jirapa with poorer mobile phone coverage? Aker, Asambobillah and Wilson

10. I used m-money to send money to pay my childs school fees… Savings group member in Zaghe, December 2012 My brother sent me money and I bought fences to fence my seedlings… Savings group member in Tigboro, December 2012 Saving on the phone is safer…it is not with me! Savings group member in Kuchen, December 2012 The phone is better, because sometimes the person delays…or eats the money. Savings group member in Nyenvaare, December 2012 Motivation Savings in Ghana Aker, Asambobillah and Wilson

11. Initial registration took time (delays in MTN agents visit to the village) Time to register once in the village was long (poor service in villages, only one mobile phone) To resolve this, the savings agent and MTN collected the IDs to register them – but in some cases MTN had the IDs for 1-2 months (voter IDs, national health insurance) Very risky for MTN, CRS, DDO, program recipients… Given delays, some individuals afraid to use it If I save, will I get it back? Dependence on us (DDO) to make transfers, deposit money, etc Not all households own mobile phones – constrains usage 11 Savings in Ghana Challenges Aker, Asambobillah and Wilson

12. Current expansion into twelve villages in Wa with funding from Mastercard Worldwide Catholic Diocese implementing, with partnerships with the University of Wa for data collection and Tufts for design and analysis 12 Savings in Ghana Expansion Aker, Asambobillah and Wilson