Financial Inclusion in Kenya Using Mobile Banking Technology

This presentation examines the impact of mobile banking technology on financial inclusion in Kenya, focusing on how saccos and microfinance institutions, particularly Musoni Bank, are reaching the unbanked population. The research explores the goals of the study, which aim to evaluate the effectiveness of mobile banking in delivering financial services to those with limited access to traditional banking. The methodology includes both primary and secondary data collection, utilizing quantitative surveys and qualitative interviews to gather insights. The presentation includes data analysis using tools like Survey Monkey and SPSS, with results displayed in graphs and tables. Findings indicate that while mobile banking has improved access, mixed responses suggest that traditional banking remains more convenient for some. The presentation concludes by summarizing the benefits of mobile banking for the unbanked, particularly in rural areas, and references relevant literature to support the research.

Financial Inclusion for the unbanked
in Kenya using Mobile Banking
Technology

Introduction
 The research is done to prioritise on the Mobile Banking system usage by saccos
and micro finance institutions to reach the unbanked in Kenya
 The micro finance institution included here is Musoni bank in Kenya
 The different aspects related to the use of this mobile banking system are
represented here to ensure benefiting the individuals belonging from low
economic background and from rural areas
 The people who find it difficult to access financial services from physical banks
have found it convenient to manage financial transactions and banking activities
with the use of mobile phones.
 Musoni is known for its every of good quality micro financial services ad leveraged
the Information and communication technology to ensure smooth business
functioning.

Goals or objectives of this research
 The actual aim of the research is to determine the impact of using Mobile
Banking system by Musoni micro-finance to reach the unbanked
Objectives:
 To become one of the most established micro finance institution I Kenya that
delivers micro financials services and benefits the people from rural areas
who do not have proper access to financial services from physical banks
 To evaluate the approaches needed to implement the Mobile Banking system
properly
 To assess the probable effects of using Mobile Banking system in creating
more services that can be easily accessible by the individuals who face
difficulty in managing financial services properly

Evidences of data collection
 Evidences of data collection re based on the inclusion of both primary and
secondary data collection
 The primary data constitutes of qualitative and quantitative data and
information, where the responses of managers during interviews are
considered as qualitative data whereas the responses of respondents provided
in the survey questionnaires distributed to them are quantitative data
 The secondary data collection is possible with the assessment of various
secondary sources like journals, articles, newspapers and financial reports of
the company
 The non-probability convenience sampling and random sampling are used to
collect qualitative and quantitative data respectively

Quantitative surveys-questionnaire
• The use of Mobile Banking technology has improved the performance of saccos and micro finance
institutions in Kenya
• The Mobile Banking technology involving use of smart cards and mobile phones has created
convenience for the unbanked in Kenya
• The low income individuals who do not have access to the physical banks are benefited the most
• 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
• The use of cell phones have created promising scopes and opportunities for synergies between
mobile banking technology and micro finance
• The Mobile Banking technology used by Musoni micro finance institution has facilitated greater
outreach to the people present in the rural areas of Kenya
• The mobile banking technology in Kenya created better flexibility for the clients to manage
payments, transactions, deposits and account balance checking
• The m-payment system has reduced time and cost while managing the financial services at
Musoni micro finance institution in Kenya
• The financial inclusion for the unbanked with the use of Mobile Banking Technology is one of the
major causes of providing better financial security and extended customers’ services
• The Mobile banking technology may not be as much secure as the financial services provided by
the traditional banks in Kenya

Qualitative interviews
 How much effective the Mobile Banking technology has been for Musoni to reach the
unbanked in Kenya?
 Is the mobile banking technology used by the saccos and micro finance institutions
much convenient and secure when compared to traditional banking activities involving
visit to physical banks?
 What are the benefits obtained by your company with the use of Mobile Banking
technology?
 Do you think that the economically backward classes of people in rural areas can be
benefited with the use of Mobile Banking Technology through Financial Inclusion for
the unbanked in Kenya?

Analysis of data
 The data analysis is done with the use of Survey Monkey tool and by
using SPSS
 The quantitative data are presented in tables and graphs for easy
understanding
 The qualitative questions are represented n question and answer
format
 The Survey Monkey statistical tool has also helped in proper analysis
and interpretation of data to derive positive outcomes

Presentation of graphs 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
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
–Strongly
disagree
15.00%
3
Total
Respondents:
20

The use of cell phones have created promising scopes and opportunities for synergies between mobile banking technology and micro finance
ANSWER
CHOICES–
RESPONSES–
–Strongly
agree
10.00%
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 in Kenya created better flexibility for the clients to manage payments, transactions, deposits and account balance checking
ANSWER
CHOICES–
RESPONSES–
–Strongly
agree
15.00%
3
–Agree 35.00%
7
–Neither
agree nor
disagree
15.00%
3
–Disagree 20.00%
4
–Strongly
disagree
15.00%
3
TOTAL 20

The m-payment system has reduced time and cost while managing the financial services at Musoni micro finance institution in Kenya
ANSWER
CHOICES–
RESPONSES–
–Very likely 5.26%
1
–Likely 31.58%
6
–Neither
likely nor
unlikely
15.79%
3
–Unlikely 26.32%
5
–Very
unlikely
21.05%
4
TOTAL 19