The Mobile Banking Customer That Isn’t: Drivers of Digital Financial Services Inactivity in Côte d’Ivoire

Côte d’Ivoire is the largest Digital Financial Services (DFS) market in the West African Economic and Monetary Union. In 2014, Côte d’Ivoire accounted for over 50 percent of the value deposited into mobile money accounts in the region. However, in common with many markets across the globe, Côte d’Ivoire has a high level of inactive DFS accounts that have not been used for over 90 days. In order to sharpen the DFS business case and to further financial inclusion, it is important to understand why the services on offer are not being widely used by registered customers. Is it a matter of pricing? Could it be product design? Does it have to do with concerns around security? Or is it an issue of customer care?

This paper discusses findings of market research conducted in cooperation with two of the largest DFS providers in Côte d’Ivoire. The study found three main barriers to usage: 1) Not a relevant service, 2) Lack of understanding of the benefits of the service/product, and 3) Too expensive.