The impact of mobile banking on financial inclusion

Abstract

The study sought to investigate the impact of mobile banking on financial inclusion. The barriers to financial inclusion of mobile banking customers and the impact of mobile banking on financial inclusion remain unknown. Consequently, the un-banked and under-banked continue to be marginalized or excluded from beneficial participation in the formal financial sector. This study therefore aimed to fill a gap by concentrating on the barriers to financial inclusion and the impact of mobile banking on financial inclusion. The study employed quantitative data collection methods. A survey was used to capture data of a statistical nature on the impact of mobile banking services on financial inclusion. A sample of 95 mobile banking customers was selected from the study population. The study was conducted in Dzivarasekwa, Seke, and Epworth low income suburbs. The major findings of the study were that mobile banking services had a positive impact on financial inclusion whilst barriers to financial inclusion manifested in the form of poor access to loans or credit facilities, problems with network coverage and security concerns related to mobile banking. Mobile banking services improved savings amongst customers over time and efficiency and convenience in effecting financial transactions. However, usage of mobile banking services did not result in improvements in access to credit facilities.The main conclusion of the study was that Network coverage and awareness in the use and access to mobile banking services all remain primary issues for those using mobile banking services. This research makes the recommendation that banks ought to create awareness among customers so that mobile banking platforms are as secured as traditional banking channels. There is need for qualitative studies and studies which triangulate quantitative and qualitative research methodologies. Such studies will enable a better comprehension of the foundations of barriers to financial inclusion and relationship between cause and impact of mobile banking services on financial inclusion.