Suri and Jack Featured on Europe's VOX

March 16, 2011

VOX

CFSP member Tavneet Suri, along with William Jack of Georgetown University, wrote a column for Europe's VOX discussing the growing use of M-PESA, the mobile banking phenomenon spreading throughout the country of Kenya.  The widespread use of M-PESA has been particularly interesting because of its ability to cut across socioeconomic boundaries, reaching rich and poor users alike.  In fact, usage from rural households, typically less integrated into the wider financial economy, is growing at astonishing rates, doubling its numbers from 2008 to 2009.  M-PESA is also showing promising effects on aiding households in facing economic security, particularly in the face of negative income shocks.  Suri and Jack note what this growing popularity could mean for the changing landscape of Kenya's financial networks as well as anticipated policy and regulatory implications.