Mobile Money Services Usage And Operational Efficiency Of Commercial Banks In Kenya

Abstract

The use of mobile money services has taken root in the country and as at now it is being popularized by commercial banks who want to have a paradigm shift from the traditional banking practices to branchless forms of banking. Technological advancements have assisted these financial institutions to be able to carry out this form of banking practices. This has also been hastened by the stiff completion within the banking industry due to the interest capping law and other factors. The objective of this study is to determine the usage of mobile money services and operational efficiency of commercial banks in Kenya. The research reviews theories such as the Transactional cost economics, the diffusion of innovation and the Unified Theory of Acceptance and Use of Technology (UTAUT).A population of survey of 43 banks was studies and 36 out of the total 43 commercial banks in Kenya provided all the data that was required. Data analysis was done using SPSS inferential statistics and descriptive statistics was done to establish the relationship between mobile money and operational efficiency. It was found out that the usage of mobile money services had a positive effect on the operational efficiency of commercial banks.