August 21

Mobile Money Loans Eating Into Banks’ Lending – Report

By Christine Kasemiire

Despite partnering with telecoms, banks continue to fill the impact of mobile money as it eats into their asset quality and profits.

Mobile money at its inception disrupted the financial sector, and banks despite the hesitation, jumped onto the bandwagon.

However, a 2020 banking sector analysis report authored by Summit Consulting, indicates that increase in mobile money deposits has a negative correlation to banks’ return on equity defined as the ability of a firm to generate profits from its shareholders investments in the company.

Photo courtesy of Morning Brew.

Source: Daily Monitor (link opens in a new window)

financial inclusion