Improving Access to Banking: Evidence from Kenya

Franklin Allen, Elena Carletti, Robert Cull, Jun Qian, Lemma Senbet and Patricio Valenzuela
Additional contact information
Franklin Allen: University of PA
Elena Carletti: European University Institute
Jun Qian: Boston College
Lemma Senbet: University of MD

Working Papers from University of Pennsylvania, Wharton School, Weiss Center

Abstract: Using household surveys and bank penetration data at the district-level in 2006 and 2009, we explore the impact of Equity Bank-a leading private commercial bank focusing on microfinance on the access to banking in Kenya. Equity Bank pursues distinct branching and business strategies that target underserved areas and less privileged households, unlike other commercial banks in Kenya. Equity Bank presence has a positive and significant impact on households' use of bank accounts and bank credit, especially for Kenyans with low income, no salaried job and less education, and those that do not own their own home. The findings are robust to using the district-level proportion of people speaking a minority language as an instrument for Equity Bank presence. We conclude that Equity Bank's business model-providing financial services to population segments typically ignored by traditional commercial banks and generating sustainable profits in the process-can be a solution to the financial access problem that has hindered the development of inclusive financial sectors in many African countries.

JEL-codes: G20 O10 R20 (search for similar items in EconPapers)
Date: 2012-07
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://fic.wharton.upenn.edu/fic/papers/12/12-11.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://fic.wharton.upenn.edu/fic/papers/12/12-11.pdf [301 Moved Permanently]--> https://wifpr.wharton.upenn.edu/fic/papers/12/12-11.pdf)

Related works:
Journal Article: Improving Access to Banking: Evidence from Kenya* (2021)
Working Paper: Improving Access to Banking: Evidence from Kenya (2018)
Working Paper: Improving Access to Banking: Evidence from Kenya (2014)
Working Paper: Improving Access to Banking: Evidence from Kenya (2013)
Working Paper: Improving access to banking: evidence from Kenya (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:upafin:12-11

Access Statistics for this paper

More papers in Working Papers from University of Pennsylvania, Wharton School, Weiss Center Contact information at EDIRC.
Bibliographic data for series maintained by ().