Bad or delinquent loans are common among banking financial institutions in Ghana, and this presents significant risks to banks and has implications for financial inclusion. An important operational and financial sector development question is how to reduce loan delinquency. Even more important is how to address the issue in rural settings which are characterised by low financial inclusion to ensure the sustainability and growth of financial services to the rural population. This study seeks to address a major gap in the literature about how digital financial services (DFS) could be used as a tool by rural and community banks (RCBs) to reduce the incidence of delinquent loans and thereby improving bank health and promote financial deepening and inclusion. We aim to pilot a simple cluster randomized controlled trial (RCT) to assess the impact of mobile retail DFS on RCB loan delinquency.
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