Domestic workers in urban Kenya, a large and economically vulnerable group, typically lack access to formal pension schemes. The emergence of fintech platforms offering micro-pensions presents a potential mechanism to improve long-term financial security, yet their impact on savings behaviour is under-researched. This study investigates the influence of fintech-enabled micro-pension products on the long-term savings practices of domestic workers. It aims to understand adoption drivers, behavioural changes, and perceived barriers to sustained participation. A sequential explanatory mixed methods design was employed. First, a structured survey (n=228) was administered to users and non-users of a leading platform. Subsequently, in-depth interviews (n=24) were conducted with a purposively selected subset of survey respondents to explore quantitative findings. Platform users reported a 40% increase in regular savings allocations. The quantitative phase identified perceived trust in the technology as the strongest predictor of adoption (β = 0.52). Qualitative analysis revealed a central theme of 'invisible discipline', where automated deductions created a forced savings mechanism that workers found difficult to replicate informally. Fintech micro-pensions can significantly catalyse formal savings habits among this demographic by leveraging automation to overcome behavioural biases. However, sustainability depends on addressing persistent concerns regarding platform trust and long-term benefit security. Providers should enhance transparency through user education on fund management and security features. Policymakers are urged to develop regulatory frameworks that build consumer confidence while encouraging product innovation tailored to low-income earners. micro-pensions, fintech, savings behaviour, domestic workers, financial inclusion, Kenya, mixed methods This study provides novel empirical evidence on the behavioural mechanisms through which digital pension tools influence financial practices, offering a new conceptual lens of 'invisible discipline' for the micro-savings literature.
Odhiambo et al. (Thu,) studied this question.
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