Mobile phone banking and financial markets in selected m-pesa outlets in Kenya

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Kampala International University, College of Economics and Management
The purpose of this study was to investigate the extent to which mobile phone banking has enhanced the involvement of people in financial markets in selected M-PESA outlets in Kenya. The study adopted a cross-sectional survey research design which allowed the collection of primary quantitative data through structured questionnaires. The target population was 500 respondents sampled from three districts (Bungoma, Nakuru and Nairobi — Kenya). Sloven’s formula was adopted to arrive at 222 respondents who were subjected to the research study. The data was analyzed using both descriptive and inferential statistics. Consequently, the findings of the study were that mobile phone banking has greatly influenced the participation of people in financial markets in Kenya since a majority of the respondents frequently used the M-PESA service because it has a bigger market penetration and widely adopted. The study also revealed that a bigger percentage of the M-PESA users are young single adults most of whom were male. It further indicated that the wider market penetration of M-PESA has enabled the people access money faster thus realizing a greater extent of mobile phone banking. The study revealed that financial markets in Kenya has witnessed a greater extent because it has shifted from corporate and big business participation to individual customers participating in financial markets. In a nutshell therefore, the study revealed that mobile phone banking is positively related to financial markets at 0.001 level of significance. The study therefore concluded that mobile phone banking has an influence on financial markets hence the need for Safari com to strengthen its collaboration with financial institutions such that the M-PESA service is integrated in their financial packages to enhance faster service delivery.
A thesis dissertation presented to the school of postgraduate studies and research Kampala International University Kampala, Uganda in partial fulfillment of the requirements for the Degree Master of Business Administration in Information Technology
Mobile phone, Banking, financial markets, Kenya