The role of mobile banking and business training in mobilising savings for microenterprise development in Mozambique (Phase Two)

This project investigates the role of technology in increasing the savings capacity of microentrepreneurs, and the importance of financial literacy in ensuring the optimal management of these savings towards enterprise development. We will apply a randomized control trial methodology to measure causal changes in savings rates, investment levels and firm productivity, among beneficiaries of an intervention that provides access to mobile banking technology with elements of incentivized savings, and an intervention that provides business management skills with a focus on how to best apply these savings towards business improvement and growth. Our main research questions can be summarized as: Can mobile banking paired with incentive schemes that encourage regular savings remove both internal and external constraints for microenterprises to save? How do business management skills mediate the impact of an increased savings capacity on microenterprise development and growth? This evaluation is designed to allow us to [1] measure the impact of mobile banking in increasing the savings capacity of microenterprises; [2] identify the importance of financial and managerial literacy to ensure the optimal management of savings and promote the development and growth of the microenterprise; and [3] quantify potential synergies between providing the technology to increase savings and the business skills necessary to best invest them.