Mobile Technology and Globalization of Financial Inclusion by NCBA Bank, Kenya

Abstract

Global financial inclusion is considered essential for promoting sustainable economic development and reducing poverty, as it enables individuals and businesses to access financial services that help them manage their resources and achieve their financial objectives. The objective of the study was to determine the effect of mobile technology on globalization of financial inclusion by NCBA bank. The constructs that were deemed to affect global financial inclusion were mobile banking, mobile money, mobile payment and mobile –based insurance. The study adopted a case study research design with an interview guide being the main data collection instrument. The bank mobile payment service is convenient and accessible to many individuals to conduct financial transactions such as money transfer, pay bills, and make purchases using their mobile phones without the need for visiting a physical bank branch. The cost of transacting using mobile technology was found to be significantly lower to both the customer and the bank. The challenges faced by the bank in extending its mobile money technology include infrastructure and connectivity, lack of stable telecommunications infrastructure that hinder the effectiveness of mobile banking services, lack of interoperability among the different operators in the region, safety and data privacy challenges, and cultural and social stigma towards the use of the mobile money technology. Despite challenges related to infrastructure and connectivity, collaborative efforts with industry stakeholders and the deployment of agents in remote areas have expanded access to financial services in East Africa. The study recommends that robust security measures and education to customers is needed on safety practices and also the bank should forge greater alliances with agents and financial institutions in the region to increase its product coverage. Similarly, regulatory authorities should come up with policies aimed at protecting consumer data and also lead to greater interoperability among different actors in the mobile technology ecosystem internationally.