Abstract
Characteristic of every developing nation, Kenya has found itself at crossroads; defining the banking industry with the urgeto provide banking services to majority of the unbanked populations. Mobile banking is a banking model that has beenadopted by Kenyan Banks to reach out to unbanked populations. This paper is based on a case study conducted in Kenyaon selected mobile banking products in 2012. The Actor Network theory methodology was used to identify and followactors. Using in-depth interviews with key informants, survey of users and agents as well as focus group discussions andobservation, it was established that agent phones and Point of service (POS) devises were used to deliver traditionalbanking services to users whose access mode was their mobile phone or debit cards. There existed partnerships betweenbanks and mobile network operators whose operations were regulated by the Central Bank of Kenya and theCommunications Authority of Kenya. This paper seeks to explore fundamental requirements for the interplay of actors inthe execution of mobile banking services. It critically analyses data collected, with reference to the Network Society theoryby Manuel Castells and Actor Network theory by Michael Callon and Bruno Latour, to inform on cross-sectoralpartnerships and user attributes necessary in mobile banking uptake and use.
Highlights
The banking industry in Kenya has seen a tremendous transformation following the release of regulations (Agency Banking Act, 2010) allowing banks to offer services through third party agents
The study established that each bank enlisted its own agents and was responsible for a differentiating structure to ensure that the model was a success the focal actor in each case
Mobile banking is a new phenomenon and with it comes a paradigm shift in the role played by users; where institutionalization of services paves way for individual autonomy exhibiting descriptions of the network society
Summary
The banking industry in Kenya has seen a tremendous transformation following the release of regulations (Agency Banking Act, 2010) allowing banks to offer services through third party agents. Kenya Commercial Bank (KCB), Cooperative Bank and Equity Bank, all financial institutions with a large retail distribution chain among others, have rolled out agent banking networks to provide an extension of services to segments that may have been difficult to harness through the traditional bank branch model By tapping into these markets through the wireless communication technology, mobile banking is emerging as a preferred channel for banking and financial services because of the ubiquitous nature of mobile devices and services, and the ability of mobile banking services to reduce overall operational costs, streamline operations, and expand customer base through flexibility. Wireless communication delivers the interactivity to perform transactions on the spot
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