EFFECT OF MOBILE MONEY SERVICES ON KENYA'S FINANCIAL INCLUSION
DOI:
https://doi.org/10.47604/ijfa.939Keywords:
Deposit Services, Saving Services, Agency Banking Services, Mobile Money Financial InclusionAbstract
Purpose: The main objective was to determine the effect of Key mobile money services on financial inclusion in Kenya.
Materials and Methods: The study adopted a census research design. The target population was limited to the 4 firms (Safaricom, Airtel, Equity and Telkom) providing mobile money services in Kenya. The study relied on secondary data. The study review period was between 2013 and 2018. Descriptive statistical approaches, regression and correlation analysis was used to analyze secondary data. Data was analyzed quantitatively by use of SPSS (Statistical Package for Social Scientist) V21 program.
Results: The study established that the Mobile money deposit services, Mobile money saving services, Agency banking services and Mobile bill payment services positively and significantly affected Kenya's financial inclusion.
Unique contribution to theory, practice and policy: The study recommends that the providers of mobile money services should increase accessibility of these services to citizens since their continued usage leads to positive and significant growth of Kenya's financial inclusion. The providers can achieve this by encouraging many citizens to be their agents in offering the services. Availability of many agents acting on behalf of the mother company in various parts of the country increases the levels of access of the financial services.
Key words: Deposit Services, Saving Services, Agency Banking Services, Mobile Money Financial Inclusion
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References
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Afande, F. A., & Mbugua, S. (2015). Role of Agent Banking Services in Promotion of Financial Inclusion in Nyeri Town, Kenya. Research Journal of Finance and Accounting, 6(3), 148-173.
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Asfaw, H. (2015). Financial Inclusion through Mobile Banking: Challenges and
Prospects. Research Journal of Finance and Accounting, 6(5),
98-104
Asongu, S. (2015). Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa. SSRN Electronic Journal.
Capie, F., & Wood, G. (2010). Banking theory, 1870-1930 (3rd ed.). New York: Routledge.
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Colombage, S. (2011). The Potential of Using Mobile Money Systems for Enhancing
Financial Inclusion in Sri Lanka Sri Lanka, Journal of Advanced Social
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Demirgüç-Kunt, A. and L. Klapper (2013). Financial Inclusion in Africa: A Snapshot,
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avenue du Ghana, Angle des rues Pierre de Coubertin et Hedi Nouira, BP 323,
1002 Tunis Belvdère, Tunisia.
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Information and communication for development, Washington, DC: World
Bank. 3(4), 61-74.
Eilu, E., & Auma, T. (2017). Mobile Money Payment Services as a Panacea to Financial Inclusion in Sub-Saharan Africa. International Journal Of Technology Diffusion, 8(4), 77-88.
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Karuppannan, R. (2013). Financial Inclusion, Financial Exclusion and Inclusive Growth. SSRN Electronic Journal, 9(21), 130-149.
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Mas, I. (2009). Designing Mobile Money Saving Services: Lessons from M-PESA. SSRN Electronic Journal.
Mbiti, I., and Weil, D. N. (2011). Mobile banking: The impact of M-Pesa in Kenya
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McGregor, R. (2013). Mobile Money Services: Increasing Access to Financial Services
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case of Safaricom M-PESA services,an unpublished MBA dissertation.UON
Munoru, M. (2016). Effect of Agency Banking on Financial Inclusion in Kenya. International Journal Of Science And Research (IJSR), 5(10), 1380-1397.
Munyoro, G., Kutesera, P., & Mazuvawanda, P. (2017). The Significance Of Mobile money Facility To Zimbabwean Economy: A Case Study Of Ecocash. International Journal Of Research In Business Management, 5(3), 1-20.
Musa. L.M & Annet . A, (2016). A pathway to financial inclusion: Mobile money and individual savings in Uganda, No 253557, Research Reports, Economic Policy Research Centre (EPRC)
Mutsonziwa, K., & Maposa, O. (2016). Mobile Money A Catalyst for Financial Inclusion in Developing Economies: A Case Study of Zimbabwe using FinScope Survey Data. International Journal Of Financial Management, 6(3), 78-86
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mobile banking. Global Conference on Business and Finance Proceedings,
Iowa Wesleyan College.
Muzigiti, G. & Schmidt, O. (2013). Financial Inclusion. Retrieved on 20th November 2018 from
http://www.dandc.eu/en/article/financial-inclusion-poor-sub-saharan-africa-improving-thanks-formal-sectorbanks
Nandhi, M., A. (2012). Effects of mobile saving services on the savings practices of the low income earners: The Indian Experience, Institute for Money, Technology and
Financial Inclusion (IMTFI), WORKING PAPER NO 7, Jesus and Mary
College, University of Dehli, India.
Omet, G., & Abdel-Halim, M. (2017). The nexux between financial development, mobile deposits, retail banking and financial inclusion: The Jordanian case. Pressacademia, 3(1), 118-130.
Ouma, S., Odongo, T., & Were, M. (2017). Mobile financial services and financial inclusion: Is it a boon for savings mobilization?. Review Of Development Finance, 7(1), 29-35.
Saliu, I. (2014). Assessing the Impact of Mobile money service on the
Socioeconomic Status of the Mobile Money Vendors, A Case of Kumasi
Metropolis. Research in Business and Economics Journal, 2(1), 48-61
Sarma, M. & Pais, J. (2010). Financial Inclusion and Development. Journal of
International Development, 23(4) 613-628
Serge.K, Clovis. R & Alain S. (2017) Does Mobile money services Affect Saving Behavior? Evidence from a Developing Country.
Vogt, W. (2010). Data collection. Los Angeles: SAGE.
Vong, J., Fang, J., and Insu, S. (2012). Delivering financial services through mobile
phone technology: a pilot study on impact of mobile money service on micro-
entrepreneurs in rural Cambodia. International Journal of Information Systems
and Change Management, 6(2), 177-186
Waihenya, H. (2012) The effect of Agent Banking on Financial Inclusion in Kenya. An
unpublished MBA dissertation. University Of Nairobi
World Bank, (2014). Global Economic Prospects: Coping with Policy Normalization
in High Income Countries. The World Bank, Washington, DC.
Afande, F. A., & Mbugua, S. (2015). Role of Agent Banking Services in Promotion of Financial Inclusion in Nyeri Town, Kenya. Research Journal of Finance and Accounting, 6(3), 148-173.
Aker, J. C. & Wilson, K. (2013). Can Mobile Money Be Used To Promote Savings?
Evidence from Preliminary Research Northern Ghana, Swift Institute Working
Paper # 2012-003.
Aker, J., & Mbiti, I., (2010). Mobile Phones and Economic Development in Africa. Journal of Economic Perspectives 24(3), 207-232.
Aker, J., & Wilson, K. (2013). Can Mobile Money Be Used to Promote Savings? Evidence from Northern Ghana. SSRN Electronic Journal. 3(8), 96-110
Antoine. D, & Leo V.H. (2017) M-PESA and financial inclusion in Kenya: of paying comes saving?
Arun, T., & Kamath, R. (2015). Financial inclusion - policies and practices. IIMB Management Review, 27(4), 267-287
Asfaw, H. (2015). Financial Inclusion through Mobile Banking: Challenges and
Prospects. Research Journal of Finance and Accounting, 6(5),
98-104
Asongu, S. (2015). Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa. SSRN Electronic Journal.
Capie, F., & Wood, G. (2010). Banking theory, 1870-1930 (3rd ed.). New York: Routledge.
Central Bank of Kenya (CBK) (2012) Financial sector development, central bank of Kenya.
Central Bank of Kenya. Bank Supervision Annual report 2010
Colombage, S. (2011). The Potential of Using Mobile Money Systems for Enhancing
Financial Inclusion in Sri Lanka Sri Lanka, Journal of Advanced Social
Studies 1(2).
Communications Commission of Kenya (2013). Annual Report 2012-2013.
Demirgüç-Kunt, A. and L. Klapper (2013). Financial Inclusion in Africa: A Snapshot,
African Development Bank (AfDB), African Development Bank Group, 15,
avenue du Ghana, Angle des rues Pierre de Coubertin et Hedi Nouira, BP 323,
1002 Tunis Belvdère, Tunisia.
Donovan, K. (2012). Mobile Money for Financial Inclusion. In T. Kelly (Ed.),
Information and communication for development, Washington, DC: World
Bank. 3(4), 61-74.
Eilu, E., & Auma, T. (2017). Mobile Money Payment Services as a Panacea to Financial Inclusion in Sub-Saharan Africa. International Journal Of Technology Diffusion, 8(4), 77-88.
Etim, A. (2014). Mobile banking and mobile money adoption for financial inclusion,
Research in Business and Economics Journal, 9 (1), 1-13
Festinger, D., DeMatteo, D., & Marczyk, G. (2013). Essentials of research design and methodology. Hoboken, N.J.: Wiley.
Financial Sector Deepening (2013). FinAccess National Survey. Central Bank of Kenya
Financial Sector Deepening, (2009). Results of the FinAccess National Survey: Dynamics of Kenya's Changing financial landscape. Nairobi. FSD Kenya.
Graham, J (2010).M-PESA: Kenya's mobile wallet revolution. :www.bbc.co.uk/news/business (
accessed 8th Nov 2018)
GSMA (2015), State of the Industry: Mobile Financial services for the Unbanked, 2014
Report, http://www.gsma.com/
Hamari, J., Koivisto, J., & Sarsa, H. (2014). Does gamification work? A literature review of empirical studies on gamification. In 2014 47th Hawaii international conference on system sciences (HICSS) (pp.3025-3034).
International Monetary Fund (2012). Enhancing financial sector surveillance in low income countries: financial deepening and macro stability
International Monetary Fund, (2014). Regional Economic Outlook: Fostering durable
and Inclusive Growth. International Monetary Fund, Washington, DC, April,
2014
Jack, W. & Suri,T. (2010). The Economics of M-PESA. http://www9.georgetown.edu/
Karuppannan, R. (2013). Financial Inclusion, Financial Exclusion and Inclusive Growth. SSRN Electronic Journal, 9(21), 130-149.
Lee, T. (2010). Comparing usage of mobile commerce in Taiwan, USA and Germany. International Journal Of Services Technology And Management, 7(3), 284.
Leishman, Paul. 2017. Serving the unbanked"¦ by serving the banked. Lessons from Safaricom, SMART, Global and Zain. Mobile Money for the Unbanked, GSM Association,
Markowitz, H.M. (1959): "˜Portfolio Selection. 'New York: John Wiley and Sons
Mas, I. & Radcliffe, D. (2010). Mobile Payments go Viral M-PESA in Kenya, Bill & Melinda
Gates Foundation.
Mas, I. (2009). Designing Mobile Money Saving Services: Lessons from M-PESA. SSRN Electronic Journal.
Mbiti, I., and Weil, D. N. (2011). Mobile banking: The impact of M-Pesa in Kenya
(No. w17129). National Bureau of Economic Research
McGregor, R. (2013). Mobile Money Services: Increasing Access to Financial Services
Momanyi, V.( 2011), Factors affecting capacity in mobile phone money transfer services: A
case of Safaricom M-PESA services,an unpublished MBA dissertation.UON
Munoru, M. (2016). Effect of Agency Banking on Financial Inclusion in Kenya. International Journal Of Science And Research (IJSR), 5(10), 1380-1397.
Munyoro, G., Kutesera, P., & Mazuvawanda, P. (2017). The Significance Of Mobile money Facility To Zimbabwean Economy: A Case Study Of Ecocash. International Journal Of Research In Business Management, 5(3), 1-20.
Musa. L.M & Annet . A, (2016). A pathway to financial inclusion: Mobile money and individual savings in Uganda, No 253557, Research Reports, Economic Policy Research Centre (EPRC)
Mutsonziwa, K., & Maposa, O. (2016). Mobile Money A Catalyst for Financial Inclusion in Developing Economies: A Case Study of Zimbabwe using FinScope Survey Data. International Journal Of Financial Management, 6(3), 78-86
Mutsune, T. (2014). No Kenyan left behind: The case of financial inclusion through
mobile banking. Global Conference on Business and Finance Proceedings,
Iowa Wesleyan College.
Muzigiti, G. & Schmidt, O. (2013). Financial Inclusion. Retrieved on 20th November 2018 from
http://www.dandc.eu/en/article/financial-inclusion-poor-sub-saharan-africa-improving-thanks-formal-sectorbanks
Nandhi, M., A. (2012). Effects of mobile saving services on the savings practices of the low income earners: The Indian Experience, Institute for Money, Technology and
Financial Inclusion (IMTFI), WORKING PAPER NO 7, Jesus and Mary
College, University of Dehli, India.
Omet, G., & Abdel-Halim, M. (2017). The nexux between financial development, mobile deposits, retail banking and financial inclusion: The Jordanian case. Pressacademia, 3(1), 118-130.
Ouma, S., Odongo, T., & Were, M. (2017). Mobile financial services and financial inclusion: Is it a boon for savings mobilization?. Review Of Development Finance, 7(1), 29-35.
Saliu, I. (2014). Assessing the Impact of Mobile money service on the
Socioeconomic Status of the Mobile Money Vendors, A Case of Kumasi
Metropolis. Research in Business and Economics Journal, 2(1), 48-61
Sarma, M. & Pais, J. (2010). Financial Inclusion and Development. Journal of
International Development, 23(4) 613-628
Serge.K, Clovis. R & Alain S. (2017) Does Mobile money services Affect Saving Behavior? Evidence from a Developing Country.
Vogt, W. (2010). Data collection. Los Angeles: SAGE.
Vong, J., Fang, J., and Insu, S. (2012). Delivering financial services through mobile
phone technology: a pilot study on impact of mobile money service on micro-
entrepreneurs in rural Cambodia. International Journal of Information Systems
and Change Management, 6(2), 177-186
Waihenya, H. (2012) The effect of Agent Banking on Financial Inclusion in Kenya. An
unpublished MBA dissertation. University Of Nairobi
World Bank, (2014). Global Economic Prospects: Coping with Policy Normalization
in High Income Countries. The World Bank, Washington, DC.
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Published
2019-07-12
How to Cite
Wakaba, V., & Wepukhulu, D. J. M. (2019). EFFECT OF MOBILE MONEY SERVICES ON KENYA’S FINANCIAL INCLUSION. International Journal of Finance and Accounting, 4(2), 1 – 18. https://doi.org/10.47604/ijfa.939
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