The Impact of Financial Regulation on the SME’s Intention to Adopt Mobile Money Lending in Cameroon

Abstract

Financial inclusion in a country is the notion of a population’s ability to fully use the financial services available in the country to facilitate transactions. Financial inclusion is also an indication of the financial standards of a country and the level of access to financial services. Cameroon’s population has low access to financial banking services. Mobile phones penetration in the Sub Sahara African region has given rise to Fintech. This research aims to understand the impact of financial regulation on the SME's intention to adopt mobile money lending service in Cameroon. Access to financial services in today’s economy is one of the most important aspects of financial inclusion. With the birth and rise of financial technology, financial services such as mobile money have improved the pace of financial transactions and thereby increased financial inclusion thanks to its access through mobile phones in the Sub-Saharan African region and specifically in Cameroon. Financial regulations are a set of rules implemented to protect and prevent risks towards both the user and the service supplier. Also, these regulations are applied with the objective to ensure compliance of financial institutions. The financial regulatory bodies in Cameroon are reluctant to introduce the mobile lending service in its territory. This study aims to understand how the financial regulation affects the adoption of the service and suggest the possible benefits that could be incurred both by the SMEs and the country’s economy in the event the Mobile lending service is granted a license to fully operate in Cameroon.