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The Catalytic Role of Mobile Banking to Improve Financial Inclusion in Developing Countries

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  • Ana Kundai Muchandigona

    (Tshwane University of Technology, South Africa)

  • Billy Mathias Kalema

    (University of Mpumalanga, South Africa)

Abstract

Financial inclusion is challenged by numerous factors that include country regulations and policies, poor infrastructure, lack of financial education and literacy, low income levels, political instability, geographical barriers, reluctance by banks to change from traditional banking models of branch networks, and expensive technology. These challenges could be addressed by leveraging technological innovations like mBanking; however, literature indicates that there is limited understanding of integrating mobile technology into banking to enhance financial inclusion. The study collected data from Vhembe District Municipality in South Africa. Results indicated that of the 17 factors tested, 14 were significant for using mBanking to improve financial inclusion. The study recommends that for financial inclusion improvement, developing countries should design realistic policies and strategies that could enable the use of mBanking, especially mobile money and agent banking, that can reach a wider population at low cost.

Suggested Citation

  • Ana Kundai Muchandigona & Billy Mathias Kalema, 2023. "The Catalytic Role of Mobile Banking to Improve Financial Inclusion in Developing Countries," International Journal of E-Services and Mobile Applications (IJESMA), IGI Global, vol. 15(1), pages 1-21, January.
    • Handle: RePEc:igg:jesma0:v:15:y:2023:i:1:p:1-21
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    References listed on IDEAS

    as
    1. Franklin Allen & Elena Carletti & Robert Cull & Jun ‘QJ’ Qian & Lemma Senbet & Patricio Valenzuela, 2014. "The African Financial Development and Financial Inclusion Gaps," Journal of African Economies, Centre for the Study of African Economies, vol. 23(5), pages 614-642.
    2. Oliveira, Tiago & Faria, Miguel & Thomas, Manoj Abraham & Popovič, Aleš, 2014. "Extending the understanding of mobile banking adoption: When UTAUT meets TTF and ITM," International Journal of Information Management, Elsevier, vol. 34(5), pages 689-703.
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