Mobile Money Financial Services: A Test For Sharia Compliancy And Financial Inclusion - A Case Of Somaliland

Abstract

Mobile Money Financial Service is a relatively new model of finance that evolved quite recently. Much of its success has been noted in developing countries. The main dynamics of mobile money financial service is to cater to primarily three groups of individual namely the unbanked but mobile population; previously banked population and otherwise unbanked population. Based on several researches that have been undertaken in this area; most have clearly identified the target groups to be people with less money and are unable to qualify for formal banking practices. Furthermore, the purpose or the underlying task of this research is to understand 4 underlying concepts related to whether Mobile Money financial service can be incorporated into the world of Islamic finance, Banking and Economics. The way this research is designed will help examine this project from the following dimensions; Firstly, to understand if the existing user profile of Mobile money financial services; this aspect will enable us to understand how mobile money is used, how long have they used the service, why they is being used and to gauge personal understanding or whether their understanding of MMFS is sharia compliant. Secondly, to determine if the service can be Islamic through examination of the service features such as; from the operator point of view, its agents, users, and on the different types of contracts available. Lastly, to find out all the other benefits of MMES that can enhance in the development of a slowly progressing nation. Data for this research is acquired in two phases; in phase I, secondary research where all relevant information is gathered through secondary sources while in Phase II. a primary quantitative research is carried out to understand attitudes and perceptions among customers of MMFS. Data was analyzed using statistical tools and content analysis where end results will be projected using graphs and other tabulations