Factors Affecting Adoption of Mobile Banking by Commercial Banks in Kenya

Abstract

In Kenya, the corporate world is interlinked to support various service systems to support each other. The commercial banks work hand in hand with the telecommunication industry to enable the consumers to easily and quickly access their money whenever need arises. The use of mobile banking entails a wireless handset which is performed through the SMS or Mobile internet hence enabling the customer to choose the best suitably preferred access. Mobile banking in Kenya can be linked to telecommunication financial services; M-Pesa, Tkash and Airtel money. Financial institutions have had difficulties in offering banking services to the poor customers through the traditional banking means. Mobile banking has become a problem solver as they can transact at affordable charges at their own convenience regardless of their geographic location. The device possessed by a person determines the ability of conducting mobile banking and not the age, (Mac Gee, 2009). In Kenya, the customers with smart phone are likely to transact more through mobile banking because of the usability of the device unlike those using ordinary phones. The economic standards in Kenya tend to be below the poverty line hence less people have smart phones and thus affecting mobile banking. The regression found a positive interlinkage relationship between the mobile banking adoption and ease of use and whereas there is a negative relationship between adoption of mobile banking and customers’ social influence. It was also revealed that financial accessibility had a positive relationship with adoption of mobile banking. Further the results shows that Risk perception had a positive relationship with adoption of mobile banking.