Mobile Banking Technology: Financial Inclusion in Kenya Report

This report investigates the use of Mobile Banking technology by Musoni Microfinance Ltd in Kenya to promote financial inclusion for the unbanked. It examines the impact of mobile banking on reaching underserved populations, evaluates implementation strategies, and assesses the potential effects of this technology. The analysis includes a PESTLE analysis, statistical data presented in graphs and tables, and a SWOT analysis. The report highlights the benefits of mobile banking in improving accessibility to financial services, reducing costs, and enhancing customer service. It also addresses the security concerns associated with mobile banking and provides recommendations for improving its effectiveness and reach to create convenience for the unbanked to access financial services and manage banking activities effectively. Survey Monkey was used for data analysis due to its effectiveness and free availability.

Running head: BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Business Research Method Research Proposal
Name of student
Name of University
Author note

1BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Table of Contents
Introduction to the actual issue..................................................................................................3
Business vision and mission statement......................................................................................3
Research goal and objectives.....................................................................................................3
Analysis of findings related to the environment (PESTLE)......................................................3
Graphs, diagrams and tables......................................................................................................4
Reason for choosing the computerised statistical system........................................................14
Analysis and discussion of the recommended solutions..........................................................14
Effective strategies needed to improve the present business situation....................................16
Marketing mix strategy.........................................................................................................16
SWOT analysis.....................................................................................................................17
Ethical considerations of research............................................................................................18
Recommendations................................................................................................................19
Conclusion................................................................................................................................19
References…………………………………………………………………………………..20

2BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Business case development
Introduction to the actual issue
According to the business case, the actual issue here is the poor accessibility of
financial services by people with lower income level and those who belong from the rural
areas with poor ability to manage financial and banking transactions in Kenya. The financial
inclusion enables provision of financial services and delivering those at an affordable cost for
the people who fall in the low income category within the society and has been a major
influencer for the growth and development in economy of the nation. There are evidences,
which showed that nearly 2 billion people faced difficulties or even have no options to access
the financial services by the saccos and micro finance institutions (Chandran, 2014). To
resolve this issue, a major World Bank Group meeting was conducted, which showed
commitment of the stakeholders towards the promotions of financial inclusion and thus a new
global development goal has been introduced to ensure achievement of Universal financial
access by the end of the year 2020 (Musoni.co.ke, 2019).
Business vision and mission statement
The vision of Musoni Microfinance Ltd is to become the most reliable and efficient
microfinance institution by using Mobile Banking technology to remain cashless, paperless
and data driven for delivering the best value, flexible and customer oriented financial services
to the people in Kenya. There are many places in Kenya, also referred to as the unbanked and
the people residing there have been unable to access good quality financial services and even
failed to manage the banking activities properly due to the unavailability of financial
institutions in those places (Mishra& Bisht, 2013). The mission statement of Musoni
Microfinance Ltd is to grow, develop and maximise the efficiency of businesses with lower

3BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
income and unbanked in Kenya with the management of flexible, customer focused financial
services’ delivery available at an affordable cost.
Research goal and objectives
The research aims to find out the impact of using Mobile Banking technology on the
ability to reach the unbanked in Kenya by Musoni Microfinance Ltd to facilitate financial
inclusion for the unbanked (Nganga & Mwachofi, 2013).
Research objectives:
 To identify the impact of using Mobile Banking Technology by Musoni Microfinance
Ltd in Kenya to reach the unbanked
 To evaluate the various ways of implementing the right mobile banking system and
ensure better accessibility to financial services for the people in rural areas of Kenya
 To assess the probable impact that might be caused with the use of Mobile Banking
technology for extending reach to more people
 To recommend necessary measures for improving the effectiveness of Mobile
Banking technology and create convenience for the unbanked to access the financial
services and manage banking activities properly
Analysis of findings related to the environment (PESTLE)
Political factors
The banking sector in Kenya is not much powerful and it has been susceptible to the
Government laws, rules and regulations. The laws introduced by the Government have
affected the banking industry and with the intervening in banking matters, the industry has
been susceptible to political influences largely as well. There are trade restrictions along with
tariffs and associated legislative laws related to political stability, which have also created an

4BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
impact on the banking industry of Kenya (Pailman, Kruger & Prasad¸2015). The political
conditions are uncertain in Kenya and crime rate is high while changing laws, rules and
regulations further contributed to the management of banks in Kenya. Due to this, the
economic development and growth have also been hindered.
Economic factors
The lower rates of interest and volatile Kenyan currency are considered as major
economic factors affecting the banking industry. The economic growth in slow and many
people have experienced poverty and lower income, due to which, they have been unable to
access the financials services properly. With the lack of knowledge and information about the
financial sector, the unbanked have not been reached, which has further hindered the micro
financial institutions to deliver best quality financial services to people with ease and
effectiveness (Shaikh, Karjaluoto & Chinje, 2015). The inflation rates have affected the
currency and created unstable conditions, furthermore, prevented many of the shareholders to
make investments where the value of currency had been high (Musoni.co.ke, 2019).
Social factors
The buying behaviours and cultural influences have influenced the people to choose
the banking options, but with the poverty and high crime rate in Kenya, most of the
individuals and unbanked have been unable to access the right financial services properly.
The consumers in Kenya in the rural areas do not have sufficient knowledge and information
about saving accounts, investments, bank related credit cards and financial transactions due to
unavailability of physical banks located in many places (Hossain et al., 2015). Due to the
expectations of seamless banking experience and with the advancement of new technologies,
the micro finance institutions have managed to provide assistance to them by enabling the
Mobile banking technology, which can make the consumers remain connected with the bank

5BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
from anywhere and at the same time, manage financial transactions with ease and
effectiveness (Kumar, Sethi & Krishnakumar¸2015).
Technological factors
The use of advanced technologies and implementation of Mobile Banking technology
have further contributed to the way consumers manage their funds. The saccos and micro
finance institutions have used Mobile Banking technology with the integration of mobile app
for creating convenience for the unbanked and people residing in rural areas to transfer funds,
manage accounts, pay bill by just using a smart phone from anywhere and anytime
(Jamaludddin, 2014).
Legal factors
Considering the fact that banking industry needs to follow strict laws, rules and
regulations related to the privacy of clients, consumer related laws and trade structures,
Musoni Microfinance Ltd has used this Mobile banking system to reach the unbanked and
those people who have limited or no access to financial services due to the lack of physical
banks near the places (Arif, Afshan & Sharif, 2016). The economic growth being poor in the
country, needs proper investments in technology to create much more convenience for the
people to manage the financials services efficiently.
Environmental factors
The micro financial institutions have focused on reducing the environmental footprint
and made sure to manage the wastes properly, thus lead to the formation of a healthy
community where people can stay healthy and live happily.

6BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Graphs, diagrams and tables
The use of Mobile Banking technology has improved the performance of saccos and
micro finance institutions in Kenya
Answer Choices – Responses –
–
Strongly agree
50.00%
10
–
Agree
30.00%
6
–
Neither agree nor disagree
5.00%
1
–
Disagree
5.00%
1
–
Strongly disagree
10.00%
2

7BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Answer Choices – Responses –
TOTAL 20
The Mobile Banking technology involving use of smart cards and mobile phones has
created convenience for the unbanked in Kenya
Answer Choices – Responses –
–
Strongly agree
25.00%
5
–
Agree
30.00%
6
–
Neither agree nor disagree
5.00%
1
–
Disagree
25.00%
5

8BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Answer Choices – Responses –
–
Strongly disagree
15.00%
3
Total Respondents: 20
The low income individuals who do not have access to the physical banks are benefited
the most
Answer Choices – Responses –
–
Strongly agree
35.00%
7
–
Agree
20.00%
4
–
Neither agree nor disagree
15.00%
3

9BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Answer Choices – Responses –
–
Disagree
10.00%
2
–
Strongly disagree
20.00%
4
Total Respondents: 20
Musoni microfinance institution in Kenya has successfully managed to implement the
Mobile Banking technology to create better accessibility to financial services for the
unbanked in Kenya
Answer Choices – Responses –
–
Strongly approve
15.00%
3
– 35.00%

10BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Answer Choices – Responses –
Approve 7
–
Neither approve nor disapprove
15.00%
3
–
Disapprove
25.00%
5
–
Strongly disapprove
10.00%
2
TOTAL 20
The use of cell phones have created promising scopes and opportunities for synergies
between mobile banking technology and micro finance
Answer Choices – Responses –
– 10.00%

11BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Answer Choices – Responses –
Strongly agree 2
–
Agree
45.00%
9
–
Neither agree nor disagree
30.00%
6
–
Disagree
15.00%
3
–
Strongly disagree
0.00%
0
TOTAL 20
The Mobile Banking technology used by Musoni micro finance institution has facilitated
greater outreach to the people present in the rural areas of Kenya