Benefits From Strategic Partnerships in Mobile Banking Services in Kenya

Abstract

Strategic alliance between banks and telecommunication firms in mobile banking is of value to customers and the firms. The alliance adds value to the consumers as well as to the capital invested into the firms. In Kenya, adoption of electronic and mobile banking has been on the rise since introduction of mobile telephones in late 90s. Banks and mobile telecommunication firms have entered into strategic partnerships to provide mobile banking services. This research sought to find out how commercial banks and mobile telecommunication firms have each separately benefited in strategic partnerships in from mobile banking. Descriptive research design was used in this study.This study established that mobile telephone firms receive cost and product related benefits more than other benefits while banks got market related benefits more than other benefits. Another key conclusion was that mobile banking services should pay more attention to those benefits that well address their needs. This study therefore recommends that strategic partnerships have benefits in major ways and that this concept should be employed by similar organizations in order to survive and sustain their operations in the competitive environment.