Risk Management and Mobile Money Regulation in Sub Saharan Africa

This dissertation proposal highlights the risks associated with mobile payments and online transactional mechanisms through mobile financial services in Sub Saharan Africa. It also recommends effective strategies to mitigate these risks through a risk management plan.

Running head: ASSOCIATED RISKS IN MOBILE PAYMENTS
Risk management and mobile money regulation
Name of the Student
Name of the University
Author Note

2ASSOCIATED RISKS IN MOBILE PAYMENTS
Abstract
With the advent of the financial transactions through mobile financial services, lives have
been made a lot easier and easier and business processes have been facilitated accordingly.
New sectors and chances have ascended to the doorways of sub Saharan Africa. However,
these mobile transactions have also led to the adjuration of several risks within the system
that remain unattended for most of the time. The purpose of the dissertation proposal is to
project out those risks so that the business process related to the financial transactions gets an
added assistance. As a whole, this proposal portrays the major risks that are associated with
the African economy online.

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Table of Contents
Topic..........................................................................................................................................4
Introduction................................................................................................................................4
Background................................................................................................................................4
Aims and objectives...................................................................................................................5
Literature Review.......................................................................................................................5
Research Methodology...............................................................................................................6
Research Schedule.....................................................................................................................7
Gantt chart..................................................................................................................................9
References................................................................................................................................10

4ASSOCIATED RISKS IN MOBILE PAYMENTS
Topic
Risk management and mobile money regulation in the sub Saharan African region.
Introduction
With the advent of the new technologies in the field of science and development, new
opportunities have opened in the field of commercial services and the banking mechanisms.
Transactions between two parties or the involvement of the multiple parties in the
transactional mechanism has been facilitated with the help of the onset of payments through
mobile money (Di Castri, 2013). Payments through mobile has not only provided a boost to
the fiscal exchange system but also has opened a new doorway for the business processes to
experience a fluency in the transfer of the funds (Iddris, 2013). These transactional exchanges
are also associated with several risks that are required to be mitigated at any cost.
Background
Payments made using the mobile services are fast and easy. Due to the fluency in the
services, it is also time efficient. Although there are a lot of benefits of the using the mobile
payments for monetary exchanges, there are several risks such as the systematic risks or the
operational risks or the reputational risks or the legal risks or the liquidity risks or the
fraudulent risks or the regulatory risks that are associated with the online transactional
processes (Jack & Suri, 2014). These risks are required to be seriously considered while
implementing the services as these risks may prove to be fatal in due course of the processes.
To mitigate these risks effectively the authority should take enough initiatives to formulate a
risk management plan by which a fair idea about the concerned risks can be developed along
with their probability of impact in the system (Njenga & Ndlovu, 2013).

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Aims and objectives
The main aim of this dissertation proposal is to highlight the risks that are often
associated with that of the mobile payments and the online transactional mechanisms through
the mobile financial services or the MFS. These highlighted risks shall be subjected with
effective management strategies that are dedicated towards marking the impact and the
probability of the associated risks in the mobile money transactions. A risk management plan
is highly required to mitigate the risks so that the safeguarding of the transactional process
can be easily attained keeping the future prospect in mind.
The main objectives of the dissertation proposal has been stated as the following:
 To understand the various types of risks that may be associated with the transactional
processes of the mobile financial services.
 To understand the impact of the associated risks in mobile money regulation and also
the probability of those risks in the upcoming stages.
 To recommend effective strategies and techniques through which the associated risks
can be minimised and can be easily mitigated through a risk management plan.
Literature Review
According to Hanafizadeh et al., 2014, encouraging the users to use vehemently the
cell phones for the transactional processes and the risks associated with the transactional
process makes it obvious to understand the associated risks and develop a risk management
plan to counter the impacts of those risks in future. The study builds on the idea of the mobile
banking and the adoption of those practices. This study has been towards a specific region in
the country of Iran. The study found that the mobile banking services are widely adopted in
this area due to the ease of use, personalised life style, perceived expenditures and the
credibility (Oscar Akotey & Abor, 2013). The study is based upon the mixture of the primary

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and the secondary sources. Although the study has done in depth analysis, it is concentrated
towards a particular region for which it cannot be highly relied upon for all cases of the
mobile banking industry.
According to Govender & Sihlali, 2014, the increased usage of the mobile
technologies makes the mobile services more appealing among the students who have
intensions to remain technically updated all the time. The study revolves around the adoption
of the mobile banking services among the students. This study is highly reliable since it is
based upon the application of the quantitative approach in the collection of data through the
distribution questionnaires among the students. The study particularly depends upon the
implementation of the Trans Acceptance Model or the TAM. It has been stated in the study
that the risks and the privacy issues are found to considerably low among the students since
they are well updated about the risks through an effective risk management plan (Osei-
Assibey, 2015). Further the study also addresses the risks that are associated in the mobile
banking and recommends way to mitigate the associated risks in the transactional processes.
Research Methodology
The research is intended to be conducted by the application of the certain principles
and guidelines of the risk management in mobile banking and the mobile money regulations.
The data for the effective framing of the dissertation shall be completely based on the
primary data regarding the associated risks and their effective management strategies in
mobile money regulation. As this proposal is concentrated towards the association of the
several risks and their management procedures, a qualitative primary data will be used in the
dissertation. The qualitative data will be collected through the help of several interviews of
the people who has been subjected to either the systematic risks or the operational risks or the

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reputational risks or the legal risks or the liquidity risks or the fraudulent risks or the
regulatory risks.
Research Schedule
Outline
Number
Task Name
Durat
ion
Start Finish Predecessors
0 Research Project 48
days
Tue
10/23/18
Thu
12/27/18
1 Research Proposal 16
days
Tue
10/23/18
Tue
11/13/18
1.1 Choosing a topic for research 3
days
Tue
10/23/18
Thu
10/25/18
1.2 Background Study of the Research 6
days
Fri 10/26/18 Fri 11/2/18 2
1.3 Development of the Research
Question
3
days
Mon
11/5/18
Wed
11/7/18 3
1.4 Designing the Conceptual
Framework
2
days
Thu 11/8/18 Fri 11/9/18 4
1.5 Development of the Research
Question
2
days
Mon
11/12/18
Tue
11/13/18 5
1.6 Research Proposal Submission 0
days
Tue
11/13/18
Tue
11/13/18 6
2 Review of the Literature and
Collection of the Data
25
days
Wed
11/14/18
Tue
12/18/18

8ASSOCIATED RISKS IN MOBILE PAYMENTS
2.1 Reviewing the available literature 10
days
Wed
11/14/18
Tue
11/27/18 7
2.2 Selecting target population for
collecting the data
2
days
Wed
11/28/18
Thu
11/29/18 9
2.3 Collecting the Data of the
Research Study
9
days
Fri 11/30/18
Wed
12/12/18 10
2.4 Analysing the gathered data 4
days
Thu
12/13/18
Tue
12/18/18 11
2.5 Submission of the Draft Research
paper
0
days
Tue
12/18/18
Tue
12/18/18 12
3 Submission of the Final Project
Paper
7
days
Wed
12/19/18
Thu
12/27/18
3.1 Critical Analysis of the findings 3
days
Wed
12/19/18
Fri 12/21/18 13
3.2 Concluding the Findings of the
Study
3
days
Mon
12/24/18
Wed
12/26/18 15
3.3 Recommendations 1 day
Thu
12/27/18
Thu
12/27/18 16
3.4 Submitting the Final Project
Report
0
days
Thu
12/27/18
Thu
12/27/18 17

9ASSOCIATED RISKS IN MOBILE PAYMENTS
Gantt chart

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References
Di Castri, S. (2013). Mobile money: Enabling regulatory solutions.
Govender, I., & Sihlali, W. (2014). A study of mobile banking adoption among university
students using an extended TAM. Mediterranean Journal of Social Sciences, 5(7),
451.
Hanafizadeh, P., Behboudi, M., Koshksaray, A. A., & Tabar, M. J. S. (2014). Mobile-banking
adoption by Iranian bank clients. Telematics and Informatics, 31(1), 62-78.
Iddris, F. (2013). Barriers to adoption of mobile banking: Evidence from
Ghana. International Journal of Academic Research in Business and Social
Sciences, 3(7), 356-370.
Jack, W., & Suri, T. (2014). Risk sharing and transactions costs: Evidence from Kenya's
mobile money revolution. American Economic Review, 104(1), 183-223.
Njenga, K., & Ndlovu, S. (2013). On rational choice, risk and utility in mobile banking:
building the information society. The African Journal of Information and
Communication, 2013(13), 42-61.
Oscar Akotey, J., & Abor, J. (2013). Risk management in the Ghanaian insurance
industry. Qualitative Research in Financial Markets, 5(1), 26-42.
Osei-Assibey, E. (2015). What drives behavioral intention of mobile money adoption? The
case of ancient susu saving operations in Ghana. International Journal of Social
Economics, 42(11), 962-979.