The Effect Of Mobile Banking On Saving Culture - A Case Of Residents Of Molo Town

Abstract

Mobile banking is a provision of banking services using handheld devices such as mobile phones and personal digital assistants. Mobile banking is relatively a new technology which is still being adopted at a rate. With the improvement of mobile technologies and devices, mobile banking users are able to conduct banking services at any place and any time. The objective of this study was to determine the effect of mobile banking on the saving culture among residents of Molo town. 300 respondents were selected from a representative sample of 542,103 residents of Molo town. Questionnaires were used to collect the primary data which was supplemented with some secondary data from Safaricom-a mobile phone service provider and also internet. The average amount saved in the phone was then regressed against the three variables namely challenges faced while using mobile banking, level of education and place of saving. The results of the study were analyzed using Statistical package for social studies (SPSS Version 19) where different data were analyzed in form of tables, graphs and pie charts. The study found out that indeed mobile banking had had a huge effect on the saving culture among residents of Molo town. Also from the study, findings were discovered that could contribute to improving the mobile banking services. The study also revealed that the variables in the equation had a significant influence on the average amount saved in p < 0.05 phone since The study concludes that mobile banking has an effect on the saving culture. Finally, the study recommends the need for further studies on mobile banking as mobile banking still remains an area that a lot need to be exploited.