The Role of Digital Payment Systems in Financial Inclusion: A Study of Mobile Banking Adoption in Kenya
Keywords:
Mobile Banking, Financial Inclusion, KenyaAbstract
Purpose: This study aims to examine the role of mobile banking in enhancing financial inclusion in Kenya, with particular emphasis on how mobile banking adoption affects access to financial products, financial behaviors, and overall economic participation.
Subjects and Methods: The study employed a cross-sectional quantitative research design involving 450 adult respondents from both urban and rural regions of Kenya. Data were analyzed using descriptive statistics, chi-square tests, regression analysis, and t-tests to assess differences and relationships between mobile banking adoption and indicators of financial inclusion.
Results: The findings indicate that mobile banking users have significantly greater access to savings, credit, and insurance products compared to non-users. Mobile banking adoption is also positively associated with improved financial behaviors, such as more frequent saving and borrowing. Demographic factors including age, income, and education significantly influence mobile banking adoption, whereas gender does not show a significant effect. Additionally, security concerns and limited awareness were identified as major barriers to adoption.
Conclusions: The study concludes that mobile banking plays a transformative role in promoting financial inclusion in Kenya. However, addressing barriers such as security perceptions and information gaps is essential to further expand access to mobile financial services, particularly among underserved populations.
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