Effecte of Mobile Banking Technology in Kenya

In: Computers and Technology

Submitted By frankmo
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MOBILE MONEY-TRANSFERS SCHEME “M-PESA” AND ITS IMPACTS IN KENYA AND AFRICA AS A WHOLE.
As the developed world begins to rebuild the recently collapsed global financial system, the financial architecture in parts of the developing world is being rapidly transformed. As the costs of mobile phone technology have fallen, and as the technology has been adapted to support financial services, mobile banking innovations have begun to spread across and within poor countries. The low cost, and the widespread unmet demand for financial services, as captured by low rates of bank access, means that mobile banking has the potential to reach remote corners of the socio‐economic, as well as geographic, spectrum.
‘Think of the developing world, and the first thing that springs to mind probably isn't cutting edge technology’, Mobile phone technology has reduced communication costs in many parts of the developing world from prohibitive levels to amounts that are, in comparison, virtually trivial. Nowhere has this transformation been as acute as in sub-Saharan Africa, where networks of both fixed line communication and physical transportation infrastructure are often inadequate, unreliable, and dilapidated. While mobile phone calling rates remain high by world standards, the technology has allowed millions of Africans to leap‐frog the land‐line en route to 21st century connectivity.
‘The success of the technology lies in necessity’, (Seema Desai), Early on in this revolution, cell phone users figured out that they could effectively transfer money across wide distances. Mobile money transfer allows those without a bank account to transfer funds as quickly and easily as sending a text message. Phone companies have long allowed individuals to purchase “air‐time” and to send this credit to other users. It was a small step for the recipient user to on‐sell the received air‐time to a…...

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