Factors influencing the adoption of mobile financial services in the unbanked population
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Date
2017-01
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Zululand
Abstract
To deliver financial services to the poor has remained a challenge for many decades. However, the growth
of technology has emerged as a key solution of financial service delivery to the poor. Financial services
delivery through mobile phone platforms can be provided where formal financial institution like banks
cannot reach. Despite these developments, the use of these services by the poor in the unbanked areas is
very low. This study investigated the factors influencing the adoption of mobile financial services in the
unbanked population. We employed a cross-sectional design by collecting data at a single point in time.
We used six variables in the study based on the Technology Acceptance Model, TAM. The variables were
Perceived usefulness, Perceived ease of use, Perceived trust, Perceived cost, Perceived risk and Social
influence. The construct validity of the measurement items was established by using confirmatory factor
analysis conducted using Structural Equation Modelling (SEM) and the reliability was established by using
Cronbach’s Alpha coefficient. The hypothesis was tested by using multiple regression analysis. The
sample size used was 250 respondents selected from the study area. The study revealed that perceived
usefulness, perceived cost and social influence had a significant influence on the adoption of mobile
financial services. Perceived ease of use, perceived risk and perceived trust were found to have an
insignificant influence on the adoption of mobile financial services. The implication of the findings forms
the basis for product or service development, pricing, marketing and policy formulation. In this study we
recommend a longitudinal research to be conducted in order to understand the influences of the adoption
behaviour at different level of market maturity and points of time.
Description
Peer reviewed article published under Inkanyiso journal, Volume 9 Number 1, Jan 2017, p. 37 – 51
Keywords
Mobile financial services, Adoption, Tanzania
Citation
Lema, A., 2017. Factors influencing the adoption of mobile financial services in the unbanked population. Inkanyiso: Journal of Humanities and Social Sciences, 9(1), pp.37-51.