Mobile Money and Sustainability of Registered Commercial Banks in Kenya

Abstract

The rapid growth of Fintech products has resulted in the development of mobile money services (MMS) offered by telecommunication companies. The MMS offers services that were initially offered by commercial banks, thus posing a threat to their operational sustainability. Commercial banks globally have started showing some signs of distress, and this ought to be examined because of their crucial roles in the economy. This study is aimed at examining how MMS influenced the long-term financial and operational sustainability of a bank in Kenya. The target population of this study were bank employees from Kenya registered banks. The targeted five seniors’ officials in each bank, making a total target population of 210 respondents. A sample of 120 respondents was randomly selected from the target population. Questionnaires were used as the primary method of data collection. The study findings revealed that mobile money had a negative insignificant impact on banks' sustainability. It was concluded that mobile money did not have a significant influence on the sustainability of commercial banks in Kenya. Based on the research findings, it was recommended that the bank. However, it was recommended that banks should be more innovative to improve their operational efficiency. Also, to improve their mobile banking platforms, banks should look at how phone companies offer mobile money services.