dc.description.abstract | Over the years banks have been known to provide financial services ranging from
receiving deposits or making payments from and to customers respectively and funds
transfer, these services are however restricted to account holders only. In the recent
past there has been a sudden increase in technological expansion and innovation that
has changed the way services in many organizations have previously been offered.
One such innovation has been the introduction of mobile money transfers service that
allows one to transfer money without necessarily having a bank account. This study
therefore sought to establish the response of commercial banks in Kenya to the
introduction of mobile money transfer and also to establish the factors influencing the
response of the banks in Kenya to the introduction of the mobile money transfer. This
was achieved by a research conducted by a research survey which was done using
questionnaires. The data was collected and analysed using descriptive statistics. The
study found that banks adopted mobile money services to satisfy their customer
demands, acquire an extensive network coverage and maintain their market share and
profitability and as a response to the market and their competitors The study found
that for the banks that embraced the mobile money transfer service did that through
either collaboration or agency relation with the respective mobile money services
providers due to various reasons such as the need to develop their products, diversify
the market, penetrate into the stiff market and also develop the banking market in
general. The study also noted that the commercial bank do not consider the mobile
money transfer services a threat as maybe deemed as the services provided are few
and transactions don’t entail large volumes of money hence services offered by the
banks cannot be ignored despite the mobile transfer service been simple fast and
convenient. The findings of this study provide information on the impact of the
mobile money transfer service and also provide insight on the areas they need to work
on both at the industry level through the Central Bank and at the governmental level
through the Ministry of Communication. | en |