Factors which determine the use of mobile banking by micro and small enterprises in Nairobi, Kenya

Abstract

Mobile banking is an application of mobile computing which provides customers with the support needed to be able to bank anywhere, anytime using a mobile handheld device and a mobile service provider. Mobile banking removes space and time limitations from banking activities such as checking account balances, or transferring money from one account to another. In recent research and studies it was found that mobile banking applications have become popular and are widely used in different countries and regions as an alternative form of banking. This study identifies and analyzes the factors which influence customers’ decision to use mobile banking services, and specifically focuses on the evaluation of mobile banking usage in the context of micro and small enterprise (MSE) operators based in Nairobi, Kenya. The research model includes the basic concepts of the Technology Acceptance Model (TAM), as well as some facets selected by the researcher for the purpose of this research. The model is tested to determine its predictive power with respect to individual's behaviour when considering the use of mobile banking. A survey questionnaire was developed and employed to collect data from 108 MSE operators in Nairobi. Kenya. The research has found that customers take into consideration the perceived usefulness of mobile banking in making adoption decision. The critical factors the MSE operators consider in determining the perceived usefulness of mobile banking are: perceived ease of accessibility, perceived low cost, perceived convenience and perceived satisfaction. The study demonstrates with regard to the mobile banking, how a hybrid approach involving qualitative data collection and a subsequent quantitative survey can help investigate how user perceptions about usefulness are formed. Although the study has its limitations, the implications of the results allow providing practical recommendations to the mobile banking service providers, and directions for further work.