Factors affecting consumer adoption of mobile financial services in Baringo County

Abstract

The aim of this study was to explore the factors affecting consumer adoption of mobile financial services among Baringo County. The study adopted a descriptive research design. The population of study consisted of all the households in Baringo County. The sample size of this study was 180 households in Baringo County determined using convenient sampling. This represents 20% of the total number of respondents’ targeted. Primary data was collected using semi structured questionnaires containing both closed and open ended questions to allow variety. The quantitative data was analyzed using descriptive statistics. In addition the study used factor analysis to uncover relationships amongst several variables. The various aspects of perceived usefulness and perceived ease that affect use of mobile financial services include consumers’ knowledge/ experience on the use of mobile phone technology affect the level of use for mobile banking, using mobile financial services would enhance their banking service, perceived usefulness or ease of use affect the customers adoption of mobile financial services and mobile financial services are easy to use. The level of education, the consumers’ lifestyle, cultural practices as well as opinions and influence of friends, family, and relatives and age influence the decision to adopt mobile financial services. Earning to use mobile banking is easy. However, interaction with mobile financial service technology requires a lot of mental effort and mobile banking services may not process payments correctly. The study recommends that the mobile service providers should be focused in terms of their needs and using the right technology to achieve the goals rather than acquiring technology of mobile banking. They should carry out a countrywide campaign to allay fears of security/safety issues like complications of the mobile banking procedures and lack of awareness security limits of the mobile banking service. The study recommends that the customers and the government, the relevant policy makers should improve the policies governing the industry and use of ICT in financial services for quality of their services to the customers to minimize the problems that they get in using the service.