in the 21st Century

98 Kenya’s Financial Transformation in the 21st Century
to capture differences in terms of individuals’ financial access, and to relate
these differences to the ATM segment that individuals live closest to.
Columns (3) and (4) report estimates using as dependent variable transactions
usage i , which indicates whether the respondent currently has a Postbank
account, a current account with a cheque book, a current account for everyday
needs without a cheque book, an ATM/debit card, or a registered mobile
money account. Surprisingly, we do not detect any significant effect of different
ownership of bank branches. Instead, individuals with a foreign-owned ATM as
the closest ATM are more likely to hold one of the above-mentioned products
than those living close to an ATM owned by a large privately owned bank.
Finally, columns (5) and (6) look at the likelihood of the respondent holding
a savings product. The results show that individuals living in proximity of an
ATM owned by an MFI or a SACCO are more likely to be using a savings
product than those with a foreign-owned ATM as the closest ATM to their
place of residency.
The findings from Table 7 show that ATMs owned by large privately owned
banks are more likely to be in proximity to less financially included populations
than ATMs of any other bank segment, although this effect is significant only
when we compare large privately owned banks to foreign-owned banks. In
other words, large privately owned banks are correlated to a greater extent with
lower levels of financial access, of transaction product usage and of savings
product usage than other bank segments.
While we find that the presence of foreign-owned banks is associated with
higher levels of financial access and usage of transaction products, our findings
also show, interestingly, that ATMs owned by SACCOs and MFIs are positively
correlated with savings usage. A potential explanation for this result is that
individuals living closer to MFIs and SACCOs, who are likely to get credit
from these institutions (as shown in Figure 7), are also likely to rely on the same
institutions for savings purposes.