Mapping mobile money loan ecosystem: insights from Ghana

Mobile money service is now ubiquitous in Ghana, enabling several new services such as mobile money loans with over 17.1 million active mobile money accounts, however, there are few studies on Ghana’s mobile money loan services in literature, therefore this paper is important in many ways since it contributes to the body of knowledge in this area. Based on the mixed method, the paper analyze data from expert interviews and a survey of 579 respondents through the lens of Actor-Network Theory. It critically examines the evolution of the mobile money loan ecosystem and its vital role in the financial system. The results show that transactions data remain vital determinants of mobile money credit scoring mechanisms using a machine learning algorithm. It discusses the balancing act of ensuring better loan repayment through tightening up loan default prediction factors that do not exclude prospective loan applicants, especially persons outside the formal financial system. This paper contributes to our understanding of the mobile money loan ecosystem, visualizing its value chain and providing indicators on improving its sustainability.