Submitted in fulfillment of the requirements for the Degree: Doctor of Philosophy (Business Administration), Durban University of Technology, Durban, South Africa, 2017. / Although numerous articles have been published globally on microfinance (MF), essentially highlighting the need to regulate microfinance institutions (MFIs), none of these, to the knowledge of the researcher, specifically explore in profundity the formulation process of financial monitoring policies (FMPs), their implementation, and the challenges MFIs encounter in implementing these policies. The wave of distressed and failing of MFIs in Ghana and the loss of hard-earned thrift deposits of the poor, therefore demand for this investigation. This study consequently viaducts the gap and contributes to the debate by reviewing the specific financial policies pertaining to MFIs, their formulation, implementation of such policies, and the challenges MFIs encounter relating to those policies. Also introduced into the MF research arena, is the concept of implementation theory to move knowledge frontier forward. Further, the outcome will be of particular relevance to all emerging economies who view MFls as praxis for poverty alleviation, employment creation and addressing inequality. The study adopted a mixed research approach, with both qualitative and quantitative data gathered from a sample of 65 MFIs in Accra through a self-administered, Likert-scaled questionnaire. Data were analysed using SPSS version 24.0, with results presented in frequency tables, figures, correlation tables, and cross-tabulations. The findings reveal that FMPs exist for MFIs in Ghana – Accra, particularly. However, regulation formulation is shown to be lopsided, with implementation of FMPs, and monitoring and supervision thereof, also found to be deficient. The results further indicate that using minimum capital as a tool to ensuring efficiency in the sector, is a major obstacle to overcome to create an impetus for regulatory non-compliance. Based on the findings, the research recommends consideration by policymakers and MFI monitoring units to create a semi-autonomous institution, the National Microfinance Promotion Authority, to regulate and supervise the MFIs in Ghana. It is also recommended that research focus be shifted to policy implementation regarding MF operations. / D

Financial exclusion is a major developmental problem. Perception has it that financial exclusion emanates from the lack of access to banking and financial services, and the general understanding is that ICT-based access to such services is the solution. In this research, which was undertaken in Ghana, Critical Realism (CR) revealed deeper causes (generative mechanisms) that underlie financial exclusion. The research followed a mixed-method approach. The CR approach guided the research to create an initial model from which hypotheses were deduced and tested; the design science approach, guided the research to create the design theory and an instantiation of an application that uses the design theory; and the quantitative method, was used to evaluate the hypotheses. CR revealed how, in a credit economy, people have a need for credit to pursue business or education opportunities. The generative mechanisms identified have revealed how the credit market for the unbanked includes the reality that a wellfunctioning credit market is self-sustaining with two mechanisms: signalling and adoption. The signalling mechanism facilitates users’ access to credit, which they in turn are able to spend on more services. On the other hand, the adoption mechanism enables the development of more services making the market more valuable, thus attracting more users in a self-feeding loop. The key findings suggest that being banked does not necessarily lead to financial inclusion and financial wellbeing. Transactional banking only serves as an "enrichment agenda for the banks", with minimal benefit to the people. There are also other non-financial technologies such as sharing and social technologies that have an effect on the provision of credit; in addition to their main purpose of saving and/or earning income, for the unbanked, by sharing resources. In Ghana, despite having bank accounts, most of the banked do not use them, because of cost and inappropriate services. This research reveals that the unexamined notion of being banked as a fundamental requirement for financial inclusion may require further investigation. The research has found that the unbanked keeping to themselves and the use of cash creates anonymity and makes them invisible to formal financial institutions, who prefer identity over anonymity, thus contributing to their financial exclusion. The following design needs were identified: inexpensive credit and value-added services such as saving groups, financial accounting services, service to report delinquent customers and education. The research offers a conceptualization of a financial inclusion ICT artefact to draw attention to the multifaceted and complex environment financial inclusion effort is immersed. This calls for an integrated approach since the issues with financial exclusion extend beyond financials and have an effect on the broader society. The research, therefore, proposes a substantive framework for improving the design and development of financial inclusive systems, which helps build trust using obligation transactions. It offers an approach to computing an individual’s financial inclusiveness, which also helps safeguard his/her financial wellbeing. The thesis makes a contribution to Information Systems theory in proposing a framework on financial inclusion using ICT. The contribution to practice is the design of an ICT artefact. / School of Computing / Ph. D. (Computer Science)