Mobile Banking Essay

The world has transitioned into the technological era where the use of mobile phone has become remarkably important to connect people globally. Referring to Aijaz and Heikki (2014), mobile banking is often defined as an enabler allowing banks and customers to interact, while mobile money involves peer-to-peer business. To give an example of what these services offer, it would allow for financial transactions such as balance inquiries, funds transfers, bill payments, and inquiries concerning account history. According to KPMG report (2015), the proportion of users in its service has grown rapidly over the past three years, with the number of global users of mobile banking projected to increase to 1.8 billion people by 2019 compared to 0.6 billion

Concurrently, poverty and disparity still exist in the world, with Kenya being one of the countries that has a financial inclusion index rank 133 from 176 countries, meaning it has a low percentage of domestic credit at 13.12% based on the borrowers and depositors among the commercial banks as Park and Mercado (2015) researched. In addition, mobile payment service is one of the most successful tools for developing nations as Kenya, which has a population of only 1% of the world 's, as well as being a widely used service in the developed world as Winn (2015) explained. For example, M-Pesa, the mobile system in Kenya that used to send and receive the transactions in real-time, may help to reduce the gap between genders for instance, using mobile money as a replacement of requirement the security of husband’s signature at the bank, and allowing women who have literacy difficulties ease-of-access to the system rather than going through formal financial channels according to Yenkey et al (2015). As Morawczynski (2009) also stated that Kenyan women might receive funds from their counterparts in order to save the money immediately. It is more likely that mobile money assists poor financial women in rural areas because the mobile phone is portable, easy access, cost-saving for transactions between counterparties, resulting in

A country which demonstrates the inclusiveness resulting from mobile banking India. Based on the findings of Srivastava (2013), who focused his research on this country, found that 41% of people living in urban areas and 60% of those living in rural areas still do not have the possibility to use traditional financial services. This will enable mobile banking to provide Indians with the opportunity to utilize the services, with the latter being of benefit to both customers and