| dc.description.abstract | Mobile banking services in Kenya have achieved substantial growth since inception in March
2007 when MPESA service was introduced by the leading mobile phone service provider
Safaricom. All the three other mobile phone service providers have since introduced the Mbanking
concept and have seen massive growth eating into the conventional banking
business.
The study's main objectives was to determine the extent of adoption of the mobile phone
banking technology, factors influencing the adoption and to determine the challenges facing
the Mobile Phone Banking in Kenya. The study which was carried out as a case study of
Nairobi CBD adopted descriptive survey research design targeting business persons in the
informal sector in Nairobi city CBD. Random sampling technique was used to identify the
respondents to the study where a total of 100 respondents were targeted. Questionnaire was
the main instruments for data collection which were then analyzed with the assistance of
Statistical Software for Social Scientists (SPSS). Eighty four (84) filled questionnaires were
returned for data analysis.
The study revealed that mobile phone banking services dominate the money transfer service
industry. In a five point rating, the M-banking indicated a rating of 90% as compared to the
others which include; Commercial banks (67%), Postal money transfer services (44%) hand
delivery (54%) and internet banking at 25%. The main reason given for the adoption of the
M-banking was the technological advancement and the accessibility. Most respondents'
interview viewed the adoption of the M-banking to be riding on the accessibility of the
service (25%). Others attributes considered beneficial to the adoption includes; ease to learn
and use (13%), service publicity (12%), Improved technology (13%) and the ability to use the
service to pay bills (11%) among others.
The respondents identified various challenges which were considered to hinder the adaptation
of the M-banking concept to include; fraud and illegal transactions (35%), Delays in network
(21%), lack of enough float at the agents outlets (18%).The researcher, following the
conclusion of the study had various recommendations to make. Most prominent of these
include; the need for mobile phone service providers to boost their capacities to reach more
people who may need the M-banking services especially in the informal sector, delays should
be eradicated to allow for efficiency and effectiveness and establishment of more secure
outlets. Others recommendations were that there is need for more surveillance and
monitoring for fraud. | en_US |
