Why Mobile Banking Succeeds In Kenya

Mobile banking is standard and is one of the easiest ways to bank or transfer money in Kenya. This development came about when Safaricom a mobile service provider introduced money transfer through the cell phone known as Mpesa. This method has improved the banking sector whereby walking into the bank for simple services is no longer seen or experienced.

Services Provided The banks have adopted the services of Safaricom to ease congestion in the banking hall. The most common services provided are withdrawals, deposits, goods and services payment, loan application and repayment, account opening and school fees payment among others. The mobile service provider has introduced pay bill numbers which work like a till for every business or institution that wishes to use this method.

How Mobile Banking Works When one opens a bank account, you fill in all of your details including your mobile number and select the service of mobile banking. All the details are then linked to the mobile service provider, and you will just activate the money option recommended by one's bank on your handset.

Through this acceptance, you will access your account and transact the money you wish to since all instructions are laid out in the money option. This service has taken over the real-time services offered by banks too. Inter-banking is carried out without any paper recording involved.

The Mpesa money transfer is a banking system too though to a limited amount of money. Being the first service ever introduced and the mainstream to mobile banking, it is almost impossible to transact your money without the application on the handset. However, other similar services have come up as competitors which are Orange Money and Airtel Money. The charges involved to send and withdraw money have been minimal for everyone to afford. Every time you transact you will receive a message either accepting or declining the transaction which is the evidence of your activity.

Advantages of Mobile Banking 1. It is real time. 2. It is convenient compared to the long lines found in banks.

3. It is cost and time saving because you access your money with ease and the 24 hours service is excellent.

Disadvantages of Mobile Banking 1. The chance of sending money to wrong accounts is high since there is no teller to counter check. 2. It is expensive compared to ATM withdrawal charges. 3. When the service provider connectivity system fails, one cannot access the bank account or transact through the phone.

Conclusion The banking system is expected to improve to a considerable economic growth due to its 24 hours operation. The tradition of waiting for banks to open and verify papers is now long past. The digital era has taken over and enabled everyone to work and transact at their comfort. This system is recommended for all persons willing to save time and money.

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