Abstract
Mobile banking is a precursor for the realization of financial inclusion among commercial banks in Kenya. The study's main objective was to determine the effect of mobile banking on financial inclusion among commercial banks in Kenya. The study adopted a positivism research philosophy. The study adopted an expo-facto research design because secondary data was the primary source data. The target population was 43 commercial banks in Kenya. The sample size was 39 commercial banks, but only ten commercial banks were selected because they had the best mobile banking apps. Inferential statistics adopted were; Pearson correlation and regression analysis. The study results revealed that mobile funds transfers significantly affect financial inclusion (β =1.697, p= 0.000). Cash withdrawals via mobile platforms significantly affect financial inclusion (β =1.195, p= 0.000). The study concluded that mobile banking has a significant effect on financial inclusion among commercial banks. In contrast, deposits via mobile platforms have a significant positive effect on financial inclusion (β =.354, p= 0.000). The study recommends that all financial institutions should adopt mobile banking as it helps to achieve financial inclusion. The banking sector should adopt the most appropriate mobile banking strategies to enhance financial inclusion.
Highlights
Financial inclusion plays a significant role in realizing an all-inclusive social, political and economic development in any country. Sharma, Khan and Thoudam (2019) opine that most poor people in underdeveloped and developing countries are unable to access financial services that will help them meet all their financial needs
It was undertaken to assess the nature of the relationship between mobile banking strategy and financial inclusion
The study concludes that mobile banking has a significant effect on financial inclusion among commercial banks in Kenya
Summary
Financial inclusion plays a significant role in realizing an all-inclusive social, political and economic development in any country. Sharma, Khan and Thoudam (2019) opine that most poor people in underdeveloped and developing countries are unable to access financial services that will help them meet all their financial needs. Financial innovations exist via mobile phones and similar devices, launched in at least 80 countries (GSMA, 2014) to encourage millions of poor customers to use digital financial services rather than cash-based transactions exclusively. These financial innovation strategies help banks as suppliers or providers of financial services lower costs by reducing queuing lines in banking halls, reducing manual paperwork and documentation, and maintaining fewer bank branches (Manyika, Lund, Singer, White & Berry, 2016). Global Findex data for 2012 reveal that only around 50% of adults in the world have at least one bank account in the formal financial system
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