Bank of africa kenya bmobile banking at the palm of. Mobile money is key to growing banks in africa quartz africa. Fast forward to 2016 and the rules of the game have changed. An empirical examination of why mobile money schemes ignite in. In china, india, africa and in other asian countries such as indonesia, banking is going mobilefirst because the countries have little or no legacy to overcome. Mobile banking in subsaharan africa munich personal repec. There has a lot written about mobile payments in africa, particularly since the success of mpesa in kenya this bbc report has the basics. In 2006, the council of ministers of the east african community eac identified the creation of a regional enabling. Mobile money schemes in developed countries face different challenges than those in. Mobile banking offers an opportunity to serve the unbanked. Mobile telephony penetration in africa has increased exponentially from less than 2 million subscribers in 1998 to over 400 million in 2009. Segun 2011 defines mobile banking as an occurrence when customers access a bank. Overview the topic of mobile banking is hot in africa kenya, sierra leone, south africa, ghana, nigeria, and all 21 mtn countries are moving deliberately, if not cautiously, to ensure their people are not left out kenyan govt. The mobile banking vendors have also been the innovators behind mobile banking and have been doing mobile initiated transactions for around 10 years.
In addition, the central bank of kenya convened a project team to. A study model has been designed, containing the motivating and impeding factors, in addition to intention. Kennedy school of government and was originally published on footnote, a website that brings academic research and ideas to a broader audience. Pdf determinants of mobile money remittance in east africa. Africas banking environment is relatively shallow and less penetrated, it is as competitive as those in other developing and high income regions. Helped by reform efforts kasekende 2010, the depth and coverage of financial systemsas measured by all the standard indicators of financial development, such as the ratios of. Mobile banking and why its growing in africa infomineo. Africa is wellknown for its ascendancy in the newest form of electronic payments, and this year saw the rise of a new form of mobile banking, particularly in south africa where several new mobile. There were about 31 million mobilevoice subscriptions in the country of 29 million people, and 12. Mobile is already the largest banking channel for the majority of banks by volume of transactions.
To break into the retail banking market, mobile banks resort to ever increasing innovative. Mobile banking could be defined as a facility which provides banking services such as balance enquiry. A ca e cc b building today, a better africa tomorrow. Theres more to come, said martison obengagyei, who heads vodafone cash in accra. Pros and cons of mobile banking renju chandran research scholar, dept. The definition of mobile banking mobile banking mobile banking has emerged as a wireless communication channel for creating value by customers in banking transactions. Mobile banking is certainly a growth industry across. Fast forward to 2016 and the rules of the game have. The enabling environment for mobile banking in africa.
Africa is the global leader in mobile money, which has become an important component of africas financial services landscape. Determinants of mobile money remittance in east africa. The banking sector in subsaharan africa has expanded steadily over the past decade. The gsmas mobile money for the unbanked mmu programme. We forecast the next 510 years will see effectively exponential growth before ubiquity flattens the growth curve. Based on the failure of the mpesa in south africa, this article also attempted to determine why mobile money service systems are difficult to apply transnationally. Upwards of 70% of bank center call volume is projected to come from mobile phones. A new report from the pew research center shows the transformative power of the cell phone in the worlds fastestgrowing market for mobile technology. More recently, fintechs have established a solid footing in the market, and a number of banks are beginning to compete.
In tanzania, the ability to send mobile payments is significant, as mobile phone ownership has grown rapidly in recent years, expanding from 275,560 mobile accounts in 2001 to 25,600,000 in 20112. In the six years since kenyas mpesa brought bankingbyphone to africa, the service has grown from a novelty to a bona fide payment network. Africa leading the way in adoption of mobile banking. This article was produced in consultation with harvard universitys john f. The region has made improvements in banking technology and innovation, and in some cases, has leapfrogged ahead of other regions particularly in mobile banking. Services allowing consumers to perform banking and payment operations on their mobile phones are surging in subsaharan africa, blazing a trail for the rest of the slowermoving world to follow. Meaning and benefits mobile banking could be defined as a facility which provides banking services such as balance enquiry, funds transfer, bill payment, and transaction history via a user. This activity can be as simple as a bank sending fraud or usage activity to a. Personal desires, knowledge, habit, resistance to innovations, experience.
What africa can teach us about the future of banking. Mobile network operators mnos have dominated mobile money services in africa for the past decade. In terms of regulations, banks in africa are well regulated with competition and entry regulations on par with standards. Vows to raise 27% of population with access to formal. By adebisi lamikanra, partner, kpmg in nigeria and head of financial services africa.
The truth about mobile banking in africa technology. Botswanas banks will need latitude to grow their noninterest. Earlier this year, the mobile phone became the first communications technology to have more users in devel. With regard to research in the mobile banking field in africa, the following key points were taken into consideration. Mobile banking is staging a true revolution in access to finance. Mobile banking activity is highest in africa, led by nigeria, south africa and kenya which has the reputation for being the worlds mobile money pacesetter with mpesa. Mobile phone penetration in africa has exploded since 2000, as it has elsewhere in the developing world. Africa is a global leader in mobile money, with telecom operators embracing innovative practices that allow customers to not only pay bills but also access services including loans, insurance, and savings.
The mobile banking vendor is often the catalyst for mobile banking in the market in that it promotes the business case of mobile banking to the mno 9 and the bank 10. Following mobile moneys rise in africa, mobile banking is. The ability to send and receive money over the phone, without the need for an internet connection, revolutionised the way banking is conducted in africa, especially in eastern countries such as kenya. Botswanas banks will need latitude to grow their non interest. Today, the main focus has been the field of modern methods of banking services, supply of banking and financial services using mobile phones. Among all mobile banking users, the frequency of mobile banking use has been relatively consistent over the past several years. The growth of global mobile banking users is in an exceptionally rapid phase. Well assume youre ok with this, but you can optout if you wish. This informed who, how and what about the mobile banking in commercial banks in kenya and as a onetime event. As standard bank is the only south african bank to feature in the international benchmark, businesstech looked into how absa, capitec, fnb and nedbanks. In the information technology it based era, mobile phone users consumers and business as well as social network are coming to realizing the value of mobile device and its utilization along with application in their daily business and.
Download bmobile from bank of africa and enjoy it on your iphone, ipad, and ipod touch. An empirical analysis of latitude of price acceptance in consumer. How mobile banking is transforming africa huffpost. In 1998 there were fewer than two million mobile phone users in africa, according to the african development bank. But the real potential of mbanking1 may be to make basic financial services more accessible to millions of poor people across the world. The bank of africa bmobile service allows you access to banking services from the comfort of your mobile phone anytime, anywhere. Among those who used mobile banking in the month prior to the survey, the median reported usage was five times per month in both 2015 and 2014, and four times per month in 20. Mobile money for business development in the east african. Palgrave macmillan studies in banking and financial institutions. As many as 30% of cell phone users in africa report that they participate in mobile banking. This study sought to determine the impact of mobile and internetbanking on performance of financial institutions in kenya where the survey was conducted on financial institutions in nairobi. Alberts college, ernakulam, kerala abstract mobile banking refers to provision of banking and financial services with the help of mobile telecommunication devices. Mobile money providers, like mpesa, are key to key to growing africas retail banking space. Subsaharan africa has more mobilemoney accounts than anywhere else in the world with about 396 million registered users at the end of 2018, a 14% increase from a year earlier, according to the.
Much has changed across africas banking industry in the past three years. Usage experiences in kenya by adrian d kamotho njenga lecturer of information systems, catholic university of eastern africa email. Munich personal repec archive mobile banking in subsaharan africa. Banking through mobile phones has been common in developed countries for years. The mobile banking phenomenon spread quickly to other countries in the developing world. This website uses cookies to improve your experience. Mobile network operators, their mobile money platforms and bank partners across the east african. Bank did not have much latitude in the legal or regulatory framework to deal with. Average cost by service type in q3 2016 world bank, remittance prices worldwide 2016.
Bmobile is a secure and convenient mobile banking service that allows you to access banking services from your mobile phone anytime anywhere. This study provides a snapshot of the current situation and analyses the possibilities and the prerequisites for broader diffusion of mbanking in africa. Cross sectional descriptive survey was employed in this case. Mobile money is the key to growing africas banking sector.
In 20, when we published our first edition of the africa banking industry customer satisfaction survey, our report found that retail customers were most concerned about the financial stability of their banks. It is a service offered by banks and other financial institutions that allow users to obtain account balances, pay bills and transfer funds on their mobiles. Com 12 dominance of wireless in africa country mobile fixed line internet seychelles 86. As such, africas retailbanking penetration stands at half the global average for emerging markets at. Rapid development of information technology has made banking tasks more efficient and cheaper. Mobile phones are replacing bank accounts in africa.
These countries have generally given mnos, and other nonbanks, latitude to lead mobile. Mobile banking is the act of doing financial transactions on a mobile device cell phone, tablet, etc. Mobile phones are replacing bank accounts in africa fin24. Many banks across the continent have moved from manual ban. Ugandas largest telecom company, mtn uganda, created its own version, mobilemoney, in march 2009. Mobile banking allows its users to conduct financial transactions through mobile devices such as mobile phones and tablets. The central bank of kenya cbk has been an integral part of this success, given.