Mobile money, rural banks, mobile communications, integration, on line financial transactions. Impact of mobile banking on financial performance of unguka. Notably the introduction of mobile money coupled with its high penetration. The other group included in the study represents impeding factors which hinder this usage, such as. This makes the starbucks mobile payment service the runaway leader in mobile. Improvements in mobile money channels worldwide have created product options among financial institutions and merchants alike. Linking adoption, impact, and use article pdf available in asian journal of communication 184. Abstract internet banking is changing the banking industry, having the major effects on banking.
Mobile banking and mobile money, page 1 mobile banking and mobile money adoption for financial inclusion alice s. These examples show that there are still challenges for organizations using mobile money, but. Zambia and zimbabwe had more mobile money subscribers than bank account holders by the end of 20 paelo, 2014. Research report making sense of mobile money in urban ghana. Effects of mobile banking on the savings practices of low income users the indian experience mani a. O department of management and accounting, faculty of management sciences ladoke.
To establish the extent of use of mobile and internet banking in. Mobilephone banking, mobile payments commonly known as lipa na mpesa and agent banking for instance are common aspects of these firms. Banks are businesses that deal in money according to the author in 11, therefore banking involves any service given and received from the bank, people open accounts with banks to save money and other people go to the bank to borrow money 12. Mobile money can also affect the efficacy of a central bank s monetary policy, particularly in relation to the control of money supply and the setting of. During the study period, the amount of money transacted through the mobile money. This makes the starbucks mobile payment service the runaway leader in mobile payments. Pathfinder and dtree, who are already using mobile money as a replacement for cash payments. The impact of mobile money on the financial performance of. Impact of mobile technologies on customer behaviour and its implications for banks, working paper no. From 2005 to 2010, mobile banking usage increased at nearly a 100% compounded annual growth ratei, with most of that growth occurring after 2007, the year that apple inc. Such regulation of the flow of money in itself has become a money making venture becoming the main stay of several kinds of institutions including banking.
Products like mobile money, that enable safe and secure money transfers without the useof a bank account, could have a major impact on this unserved segment of the population. The paper focuses on innovative mobile phones money and banking options in four african countries kenya, nigeria tanzania an d uganda. The purpose of the study was to establish the effects of internet banking on the financial performance of commercial banks in kenya. The novelty of mobile money and its recent introduction in many countries means few studies have examined the economics of mobile money. In 2015, almost a third of active mobile money accounts in east africa were in tanzania. Aug 30, 2017 the impact of mobile banking john okoye august 30, 2017 takeaway. Electronic commerce ecommerce continues to have a profound impact on the global business environment, but technologies and applications also have begun to focus more on mobile computing, the wireless web, and mobile commerce. Impact of mobile banking on service delivery in the. Presented at portland international conference on management of engineering and technology picmet 2006, 8 july 2006, istanbul turkey. With this unprecedented access to account balances, check depositing and money transfers, all available 247, consumers are expecting more from their banks.
Impact of mobile banking on financial performance of. Mobile money or branchless banking schemes are sprouting across the world. Mobile money services design and development for financial. According to porteous 2006, mobile banking includes mobile payments but involves access by mobile device to the broader range of banking services, such as accountbased savings or transactions products offered by banks. On the other hand mobile banking can be described as the provision and availing of. According to data from a limited demandside survey,6 32. Abstract this study is for providing an analysis of the impact of mobile banking in financial performance of unguka bank ltd20122016. Money, the medium of exchange has seen significant transformation over centuries. Article pdf available in international journal of computer applications 1474. With four mobile money providersairtel, tigo, vodacom, and zantel9tanzania is a significant contributor to growth in the region. Writers like porteous 2006, weber and darbellay 2010 have subdivided mobile money into mobile banking mbanking and mobile payment mpayment. Determinants of mobile banking adoption in the ghanaian. It is also important that the mobile money service programs designed in a country address.
For the most part, they rely on cash, physical assets and informal services to manage their financial lives. Development of electronic money and its impact on the central. It highlights differences among the 4 countries and their financial regulatory environment. Definitions the definition of mobile money varies across the communication industry as it covers a wide scope of overlapping applications dermish et al. The findings revealed that many mobile banking products are being offered by banks such as fund transfer between accounts efunds transfer, bill payment, free estatements and. Rapid development of information technology has made banking tasks more efficient and cheaper.
Mobile money a payment industry revolution impacting. An assessment of the impact of mobile banking on traditional banking in nigeria article pdf available in international journal of business excellence 114. The revolution is mobile banking the use of mobile phones to make financial transactions. European scientific journal november 2018 edition vol. Mobile money mpayments are increasingly being adopted by organisations as a new way of doing business in the 21st century. This informed who, how and what about the mobile banking in commercial banks. To establish the effect of cheaper internet connectivity on performance of banks. Mobile money gives anyone with a mobile phone the ability to transfer money, make cash payments and conduct other financial transactions over the phone.
Effects of mobile banking on the savings practices of low. However, the effect this adoption has had on their performance has remained unclear. According to the gsma 1 website, as of september 20, there are 192 live mobile money operations in the world, and a further 109 in. The growth was motivated by the convenience offered by the service. This study sought to determine the impact of mobile and internetbanking on performance of financial institutions in kenya where the survey was conducted on financial institutions in nairobi. Table 1 breaks down the overall use of mobile payments in may 2018. The advantages and disadvantages of mobile money on the. During the study period, the amount of money transacted through the mobile money transfers increased steadily from 0. Etim winston salem state university abstract as the developed economies are poised to transition many smart mobile.
Mobile banking a catalyst for improving bank performance 3 the demographics of mobile banking mobile banking is growing at a fast clip among u. Regulators from the central banks of uganda, zambia, ghana, and malawi pointed out their diverse challenges. Cross sectional descriptive survey was employed in this case. Development of electronic money and its impact on the. Nandhi jesus and mary college, university of delhi, india abstract in 2011, sixtyfive percent of indias population did not have access to a bank account global findex 2011.
Research questions the following research question guided the study. Mobile banking and mobile money adoption for financial. The purpose of this paper is to evaluate how the surge in mobile money usage impacts on the payment systems in ghana. The impact of mobile money on monetary and financial. In the last few hundred years, money has been regulated by banks. Pdf this study examines the effects of mobile money on the value chain, i. Impact of mobile banking on financial performance of of unguka microfinance bank ltd, rwanda only brought new avenues for access of financial services but also impacted on the number of people accessing these services. To address this evidence gap, this study assesses the impact of mobile money. Impact of mobile banking on service delivery in the nigerian. With mobile banking, they can now enjoy the same basket of financial services through mobile banking. The specific objectives were to establish the effect of mobile banking transactions volume and mobile banking products on the financial performance of commercial banks. It further examines different regulations that have influenced the development of financial inclusion through the use of the mobile financial services in the 4 countries. Although starbucks mobile money can only be used at starbucks points of sale, and involves only small transactions, 7. Mobile banking could be defined as a facility which provides banking ser.
Mobile banking and mobile money adoption for financial inclusion. According to a recent survey conducted by the federal reserve, 71 percent of adults with bank accounts use online banking services, and 38 percent access services via mobile devices, an increase of five percent over the previous year. Gsma survey of customer fund safeguarding practices junejuly 2015. Effects of mobile banking on the financial performance of.
The impact of mobile banking on financial inclusion in. Pdf impact of electronic banking on customer satisfaction. The mobile banking system is definitely ideal for the remote areas given that it is an easily accessible, cheaper, more convenient and faster means of sending and receiving money. Perceived risk has the stronger impact on customers attitude, which in turn influences customers intention to use electronic banking services. Mobile money systems offer a dual promise, as an engine for financial inclusion and as an emerging market business opportunity for providers.
Pwc 2016 ghana banking survey 2 vish ashiagbor country senior partner s even years after the launch of the first mobile money solution in ghana, the service can be said to be a game changer in the countrys financial services industry. To address this evidence gap, this study assesses the impact of mobile money across several countries in subsaharan africa. The socioeconomic impact of mobile financial services. May 28, 2018 using mobile money you can withdraw and deposit cash, pay money to others, and keep money stored for later use. Regulatory impact on mobile money and financial inclusion. This paper will focus on the development of electronic money and its impact on the central bank role and monetary policy. It is the most leading part of the financial sector of the country as it is responsible for more than 70 % of the funds flowing through the financial sector in the country. Consumers used to expect that banks would hold their money, pay some interest and maybe provide advice and other brickandmortar based services. Cameroon, smes needs concerning financial liquidity and banking services are. Impact of mobile banking on service delivery in the nigerian commercial banks adewoye, j. Notably the introduction of mobile money coupled with its high penetration has enhanced access to finance and greatly. However, the impact of mobile money on macroeconomic and financial development is not as well understood, particularly in relation to monetary and financial stability, which form the two primary objectives of central banks.
It would therefore be informative to analyze the impact of mobile banking, specifically mpesa to the society in kenya and understand perceptions about mobile banking among users and nonusers. To establish the impact of mobile and internet banking on the performance of financial institutions in kenya. Chart 1 provides the number of mobile money customers compared with the number of bank customers from 20 to 2016. The survey was completed by 23 gsmamember mobile money providers operating in africa, asia, and latin america. Financial inclusion and integration through mobile. The study sought to analyze the effect of mobile phone transfer. Note that there can be multiple regulators involved in the regulation of mobile money.
In a closed loop mobile money environment that we know today, the impact of mobile money services on financial inclusion is marginal as a wide range of payment and financial services are not possible. Regulatory impact on mobile money and financial inclusion in. Effects of internet banking on the financial performance. Mobile banking could be defined as a facility which provides banking ser vices such as balance enquiry, funds transfer, bill payment, and transaction history via a users mobile phone. Questionnaire for customers the objective of the study is to identify and analyse the factors influencing the customers adoptionusage of technology in banking services in visakhapatnam city. Impact of e banking on traditional banking services shilpan vyas school of computer science and information technology, singhania university, pacheri bari, jhunjhunu 333515 rajasthan, india. Effect of mobile phone transfer services on performance of. For providers of digital financial services, mobile money can be a gateway into huge and largely untouched markets. Pdf effects of mobile money on beige bank, ghana european. Zambia has begun to reach financially excluded families as cell networks expand, providing mobile money.
During the last few years, the use of mpayments as a new payment channel has resulted in an increase in the volume of. Proponents of mm have repeatedly argued that mm could make saving opportunities more accessible, especially for the unbanked e. Here the focus is primarily on the forces sustaining the development of e money and on the central bank ability to conduct monetary policy in the presence of e money. This study seeks to undertake an assessment of the impact of mobile money by studying airtel money in malawi as a case study. Economic impact of mobile money 22 growth in tax revenue using mobile money instead of cash or cheque for p2g and b2g makes it simple, easy and quick for a taxpayer to settle their. International conference on mobile money uptake, by ghana technology university college gtuc in partnership with the institute for money, technology and financial inclusion imtfi usa, at accra, ghana, 20 keywords. Pauls university hard copy available in university library. The bou has only approved mobile money operations when this is done in partnership with a supervised financial institution sfi. The author in14 defines mobile banking as an occurrence when customers access a bank.
The role of rural banks in providing mobile money services to. Mobile phone applications were the mostly used with 46 65. Mobile money in uganda international growth centre. Even when banks issue mobile money, deposit insurance may not mitigate the risk of loss of funds due to bank insolvency. E money refers to payments made using prepaid cards, debit and credit cards, loyalty. Mobile banking a catalyst for improving bank performance. In general, mobile money is a term describing electronic financial. Mobile payments in egypt operate on a bank led model and mobile network operators mnos have the greatest market share. Mobile money knowledge mmk positively influences mobile money mms adoption by smes in zimbabwe.
Ifc has recognized the potential of using mobile money as a mechanism to deliver financial inclusion and, in november 2012 mobile money was formally adopted as a significant part of its access to finance work. The impact of technology on banking operations, a comparative analysis between public and private sector banks. Mobile money service providers mmsp are required to hold, in an escrow account in their partner sfi, the equivalent of all the mobile money that has been issued to their customers and agents. To determine the effects of 24 hour e banking to the overall financial performance of commercial banks. Analysis of pakistan, bangladesh, india, serbia and. Pdf an assessment of the impact of mobile banking on. The study was carried out in lagos state with one hundred and forty 140 questionnaires administered and distributed to both senior and junior staff of the selected banks, thirty five 35 staff each were picked. The impact of mobile money interoperability in tanzania.
1484 1021 1004 800 1230 1482 840 969 1373 100 665 38 86 19 812 106 1042 425 266 947 1416 935 1351 741 1253 485 771 352 355 399 213 353 341 636 886 116 376 469 961