In most instances the mobile banking vendor has been the pioneer in shaping industry adoption. Unlike the related internet banking it uses software, usually called an app, provided by the financial institution for the purpose. It was established that though customers have remained loyal to banks, the banks have not been able to grow their. The mpesa mobile payment system was launched in kenya in 2007. Objective of the study the main objective of the study is to examine the determinants of. Africas banking environment is relatively shallow and less penetrated, it is as competitive as those in other developing and high income regions.
You can also classify mobile banking based on the nature of the service. The scope of offered services may include facilities to. Mobile banking and mobile money adoption for financial. This service is therefore only available to people who possess a formal bank account. It is clear why banking is perceived as the major industry for fintech because mpesa was the poster child for it. Ebanking services features, challenges and benefits 53 allows the customer to perform financial transactions from hisher home computer via a modem. Mobile banking is staging a true revolution in access to finance. Jan 24, 2014 mobile banking activity is highest in africa, led by nigeria, south africa and kenya which has the reputation for being the worlds mobile money pacesetter with mpesa. The purpose of this research is to investigate the perceived barriers to adoption of mobile banking among consumers, and to assess whether the usage of m banking is constraint on the basis of different demographic characteristics such as age, income level, mobile phone usage experience and marital status. Mobile money services a bank in your pocket an overview of trends and opportunities 7 their accounts and to perform transfers and payments. Over the last decade, global mobile money adoption has been driven by growth in subsaharan africa.
For this third edition of eibs study of banking sectors in ssa, the sections devoted to. Dec 17, 2018 fintech is not confined to mobile banking in africa, he says. Jared osoro, director, kenya bankers association centre for research on financial markets and policy, and habil olaka, chief executive officer, kenya bankers. This paper provides insight into the lack of mobile money adoption in west africa through an information and communication technology ict study in nigeria, the largest country in west africa.
Financial inclusion in africa world bank documents. In 2011, mobile money transactions in africa stood for 63% of the total value and kenya alone accounted for us. More recently, fintechs have established a solid footing in the market, and a number of banks are beginning to compete aggressively for the mobile banking customer. This study makes several recommendations for continued research in the area of mobile banking. Moreover, the extant literature appears limited by its narrow focus on sms banking in developing countries. How mobile banking is transforming africa huffpost. The study was geared towards investigating the use of mobile phones for mobile banking and mobile money services. Mobile wallets, ondemand banking apps, and the new trend of digital assistants like siri and alexa are at the forefront of the mobile banking wave. The mobile industry in africa has become an enabler of economic development. One mobile banking scheme in particular, mpesa in kenya, has shown phenomenal success, and has been a catalyst for. To remain successful, modern banks must strike a balance between their brickandmortar branches and their mobile banking offerings.
More recently, fintechs have established a solid footing in the market, and a number of banks are beginning to compete. In east africa, this service has an important social role, enabling financial inclusion and allowing lower income and remotely located. Overview the topic of mobile banking is hot in africa kenya, sierra leone, south africa, ghana, nigeria, and all 21 mtn countries are moving deliberately, if not cautiously, to ensure their people are not left out kenyan govt. Finally, a number of telcos have managed to develop a superior client experience early in the evolution of mobile financial services in africa. Mobile banking is a very fascinating area, and one that citi has taken very seriously from the beginning. Brian richardson, founding director and ceo of wizzit bank, is a man who breathes mobile inclusion for those at the bottom of the pyramid. The purpose of this research is to investigate the perceived barriers to adoption of mobile banking among consumers, and to assess whether the usage of mbanking is constraint on the basis of different demographic characteristics such as age, income level, mobile phone usage experience and marital status. An evolving landscape 1 for purposes of this article, mobile payments do not include payments made using financial institutionsponsored online bill payment services. Based on the failure of the mpesa in south africa, this article also attempted to determine why mobile money service systems are difficult to apply. Afdb africa economic brief african development bank.
Growth and innovation in african retail banking, in english pdf 5mb and french pdf 2mb. The region has made improvements in banking technology and innovation, and in some cases, has leapfrogged ahead of other regions particularly in mobile banking. And its the consumers who often act as the prime movers of innovation. Mobile banking and why its growing in africa mobile banking allows its users to conduct financial transactions through mobile devices such as mobile phones and tablets.
Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet. Mobile banking and why its growing in africa infomineo. Pdf fast growing economies with limited formal banking services experience greater financial exclusion and transaction curtailment, but mobile. Vows to raise 27% of population with access to formal. Kennedy school of government and was originally published on footnote, a website that brings academic research and ideas to a broader audience. The overall objective of the study was to determine factors affecting adoption of mobile banking technology in kenya. African countries south of the sahara are poised to enjoy a surge in growth in their banking systems during this decade. Africa is the global leader in mobile money, which has become an important component of africas financial services landscape. Pdf behavioral intention towards mobile banking usage by. The paper aim to examine the impact of mobile banking on service delivery in the nigerian commercial banks. Complete the registration form opposite to download your free summary of banking in subsaharan africa to 2020. Mobile network operators mnos have dominated mobile money services in africa for the past decade.
Subsaharan africa global 39 92 2 5 2006 2016 subsaharan africa global 140 277 2 2006 2016 7. A ca e cc b building today, a better africa tomorrow. To establish the relationship between perceived usefulness pu and adoption of mobile banking technology in nakuru municipality. A bank, mobile network operator mno, a mobile banking technology vendor, and the consumer. There are loads of other services that can be applied to beyond mobile banking, like microinsurance. You cant be an economic citizen of a country without access to financial services. Pros and cons of mobile banking renju chandran research scholar, dept. Nov 14, 2016 in developing countries, however, a tool like mobile banking can be transformational. Jeanphilippe stijns and adeline pelletier, with box 1. African retail bankings next growth frontier mckinsey. Regulatory rigidity affected the takeup of mobile money services in some african markets, but overall mobile communication networks introduced innovative products to extend mobile banking into. Impact of mobile banking on service delivery in the.
Mobile banking is a financial service often available in developed countries, but not in most. Delivering on financial inclusion, supporting financial stability. Expanding quickly, with over 620 million mobile connections as of september 2011, africa bears the second largest mobile. Apr 11, 2017 mobile banking and why its growing in africa mobile banking allows its users to conduct financial transactions through mobile devices such as mobile phones and tablets. Banking in the development and growth of the economy. Challenges, benefits, and adoption dynamics of mobile banking at. Evolving banking trends in subsaharan africa key features and challenges mauro mecagni. Technology is moving at lightspeed, and it presents a wave of opportunities for financial institutions willing to adapt. Africa banking industry customer satisfaction survey, our report found that retail customers were most concerned about the. This study was guided by the following specific objectives. Jun 28, 2019 however, as the above mobile banking trends demonstrate, innovations are constantly unfolding.
One mobile banking scheme in particular, mpesa in kenya, has shown phenomenal success, and. Banking in subsaharan africa european investment bank. It is a service offered by banks and other financial institutions that allow users to obtain account balances, pay bills and transfer funds on their mobiles. Consumer adoption of mobile banking has been slow when compared to the rate of increasednumber s of the cell phonesubscriber base in south africa. Mbanking mobile banking mwallet mobile wallet mfi microfinance institution mm mobile money msme micro, small and medium enterprise. Mobile banking in subsaharan africa munich personal repec. Feb 21, 2017 the mpesa mobile payment system was launched in kenya in 2007. Mobile banking or mbanking is a service provided by a bank or other financial institution that allows its. In south africa, first national bank also partners with cell phone provider mobile telephone networks mtn, which provides services for south africans who. Today, as it faces new challenges, it has 30 million users in 10 countries and three continents.
Challenges and opportunities for mobile banking in africa benefits of mobile banking in rural africa mobile industry in ldcs least affected by global economic problems per itu 2009 report new economic opportunities, time efficiencies, market information and transaction ability trickle down to the poor for the first time in a life. M banking mobile banking mwallet mobile wallet mfi microfinance institution mm mobile money msme micro, small and medium enterprise mtn mobile telephone network mno mobile network operator mvno mobile virtual network operator nfc near field communication otc over the counter p2b person to business p2p person to person pc personal computer. Joseph carasso, managing director of citi bank tanzania explains. Objective of the study the main objective of the study is to examine the determinants of mobile banking adoption as a communication. Lessons on digitization from four years of operations. Determinants of mobile banking adoption in the ghanaian. The development of mobile banking has contributed towards enhanced financial inclusion in subsaharan africa ssa. Some specific issues related to access to finance for enterprises, especially small and medium ones are addressed by thorsten beck tilburg university in the fifth chapter.
Lazarus muchenje ceo celpay holdings limited pdf created with pdffactory pro trial version. The findings will indicate whether the mobile banking system is as farreaching, accessible and contributes to the potential understanding on how to make formal financial procedures through mobile banking to mobile subscribers. The top five telcos in africa have 60 percent of all telco customers in africa, versus 22 percent for the top five banks in africa. Mobile banking in south africa brian richardson of wizzit. Fintech is not confined to mobile banking in africa, he says. Mobile banking activity is highest in africa, led by nigeria, south africa and kenya which has the reputation for being the worlds mobile money pacesetter with mpesa. The enabling environment for mobile banking in africa. Alberts college, ernakulam, kerala abstract mobile banking refers to provision of banking and financial services with the help of mobile telecommunication devices. Boa bank of africa tanzania bot bank of tanzania btc alliance better than cash alliance chw community health worker crdb corporate rural development bank.
The delivery of a mobile banking service to a consumer involves the participation of four primary players. In less than ten years, kenya has become the leading country in ssa for mobile banking penetration and mobile banking has been instrumental in providing access to. Africa is the global leader in mobile money, which has become an important component of africa s financial services landscape. In addition, telco is a much more concentrated industry than banking. Rolling out of new mobile banking business in zambia and drc. Mobile banking offers an opportunity to serve the unbanked. Transactionbased services, such as a funds transfer or a bill payment, involve movement of funds from one source to another. Based on the failure of the mpesa in south africa, this article also attempted to determine why mobile money service systems are difficult to apply transnationally. This article was produced in consultation with harvard universitys john f. Impact of mobile banking on traditional banking practices in zimbabwe mavhiki severino midlands state university, gweru, zimbabwe. Fast forward to 2016 and the rules of the game have changed. November 2007 celpay partners presentation rolling out of new mobile banking business in zambia and drc presented by. Banking in subsaharan africa to 2020 the economist. Research conducted by world wide worx, a technology research company.
Theyre increasingly demanding and want selfservice, personalization, and immediate assistance. The chart below summarizes these various types of mobile banking. In the information technology it based era, mobile phone users consumers and business as well as social network are coming to realizing the value of mobile device and its utilization along with application in their daily business and. Factors that impact consumer adoption of mobile banking. The study is built on the rationale that the mobile banking systems in tanzania could. With more money mobile accounts than traditional bank accounts, financial inclusion has.
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