The influence of mobile money wallets on banking services among commercial banks in Kenya

Abstract

The rapid rise in the growth of mobile technology throughout the world is a phenomenon that has been particularly remarkable among poor people, largely because of the prepaid model and ability to store and transfer cash. As a result, all classes of society now have access to financial services as people become increasingly familiar with a mobile-money bill payment system. This concept of marketing being relatively new to most banks in Kenya has made them to operate in a highly competitive and uneven marketplace characterized with consumers who are highly literate and financially empowered The study was carried out through a descriptive survey design where the units of study sought to establish the influence of mobile money wallets on banking services among commercial banks in Kenya. The target population was 42 commercial banks in Kenya. The data collected was via both Primary and secondary methods with the primary data collected through interviews using questionnaires and secondary data through from the Banks websites, mobile phone service Providers‟ websites and the website of the banks regulator (Central Bank of Kenya) and the mobile phone companies‟ regulator (Communications Commission of Kenya), financial reports and various market surveys. The study concludes that all the factors; technology, business location, service delivery, customer care convenience, cost of service, product range influence of mobile money wallets on banking services among commercial banks in Kenya but with different weight and direction. The study found that mobile wallets affected banks services efficiency and effectiveness and therefore recommends that commercial banks should incorporate the money wallets for their customers to use in the transferring of funds between their mobile phone accounts and their respective bank accounts for easy accessibility and convenience. The study further recommended that government should encourage the incorporation of the mobile money accounts and transferability and also encourage innovation in the fields of mobile money so as the country could be in the league of the developed countries.