in the 21st Century

Financial Capability and Financial Inclusion 269
6 Estimation results: The role of financial capability
in financial inclusion
In this section, we examine the relationship between the DEA measure of
efficiency in achieving financially capable behaviour and access to the three
most used financial services in Kenya: mobile money (66.4%), banks (31.8%)
and ROSCAs (25.6%) (see Table A3 in the Appendix for summary statistics).
Table A6 presents the marginal effects for bank access across a range of
specifications, and demonstrates that the DEA is positive and significant across
all specifications. The results for ROSCAs (Table A7) are similarly positive and
significant. The results for mobile money (Table A8), in contrast, show that the
DEA efficiency score is not significant once other variables are controlled for.
These results are summarised in Figure 2, which shows the marginal effects of
higher efficiency scores on access to each of these services (holding all other
variables at their mean values). This presents a rather interesting relationship
in which the strongest and most positive relationship is with ROSCA access,
while that for bank access is much weaker and that for mobile money is slightly
negative and declining. This result is not causal, as the effect of efficient
behaviour on ROSCA use can run in both directions. Those who are more
efficient are more likely to select themselves into ROSCAs, but, on the other
hand, as the likelihood of membership of a ROSCA rises for other reasons,
greater efficiency is achieved through the discipline that it offers.
Figure 2: Marginal effect of financial capability on access
.4
.3
Marginal effect
.2
.1
0
-.1
0 .2 .4 .6 .8 1
DEA
Bank
Saving in ROSCA
Mobile money