Mobile Money Service as an Opportunity for the Growth of Commercial Banks in Tanzania: Learning from Mobile Money Service in Iringa Municipality in Tanzania

The purpose of the study was to investigate the potential of mobile money service as an opportunity for the growth of commercial banks in Tanzania.  The study sought to answer the following research questions: What is the contribution of mobile money service in reaching the unbanked in Tanzania? And to what extent mobile money service contributes for the growth of commercial banks in Tanzania? A descriptive research design was used in gathering information from a population of employees of banks, mobiles money services agents and their customers in Iringa municipality. Purposive and convenience sampling design techniques were used to select a representative sample size of 120 from employees of the six banks, mobile money service agents and their customers. The data were collected by using structured questionnaires and analyzed by the use descriptive and inferential statistics whereby Chi-Square, regression analysis, and Pearson correlations were used to test the strength the relationship of variables under study and test the formulated hypotheses of the study. The study revealed that mobile money services have the potential of accessing the unbanked and promote the growth of commercial banks in Tanzania. Key words: Mobile money service, Growth of Commercial banks

Cyber Security Challenges, its Emerging Trends on Latest Information and Communication Technology and Cyber Crime in Mobile Money Transaction Services

This paper investigates the challenges emerging trends on latest Information and Communication Technology and cybercrime in mobile money transaction services in Tanzania. The objective of this is to evaluate the challenges associated with this rapid growth in ICT and to determine factors influencing Cybersecurity readiness and Cybercrimes in mobile money transaction services.  Cyber Security plays a significant role in the field of Information and Communication Technology especially on mobile money transaction services. The study recognizes the provision of mobile money services by both telecommunication companies and local banks, the fact is that whenever we think about the cyber security, the first thing that comes to our mind is “cybercrimes” which are increasing extremely day to day and become a threat. Cybercrimes are mostly practiced through both internet and mobile money services. Securing the information has become one of the major challenges in the present day. Various Governments and companies are taking measures in order to prevent these cybercrimes. Besides cyber security remains concern to many. This paper mainly focuses on challenges faced by cyber security on the latest information and communication technology and cybercrime especially in mobile money transaction services in Tanzania. Its latest techniques, ethics and trends that change the face of cyber security. Relevant data was collected from the Forensic Section of the Tanzania Police Force, Mobile banking mobile money agents and users of the mobile-money services. This study also used the Pearson correlation and analysis of variance (ANOVA) to establish different facts and determine whether the independent variables had a combined effect on the dependent variable. The findings of the study revealed that there is a positive and significant correlation between users’ awareness, mobile money agents training, top management support, technical and logical controls and cybersecurity readiness. The study also concluded that effective training programs aimed to enlighten the users and mobile money agents on cybersecurity issues are an important ingredient for cybersecurity readiness in cybercrime in mobile money transaction services

Adoption of Mobile Money Services among University Students in Tanzania

The focus of the study was to assess factors influencing adoption of mobile money services among university students in Tanzania. The study adopted a quantitative approach where questionnaire was used to collect data from students of Ruaha Catholic University. Stratified sampling was used to ensure sample representation among students from different faculty and level of education thereafter simple random sampling was used to pick a sample size of 383 of respondents from the strata developed. Exploratory factors analysis was used to ensure construct validity of four construct. Cronbach alpha indicated that all variables had achieved an accepted range of internal consistent by yielding a Cronbach alpha p-value grater that 0.6.Using multiple regression analysis, findings revealed that students\u27 attitude, social factor and facilitating condition are significant factors influencing university students adoption of mobile money services in Tanzania.Based on these findings this study concludes that students\u27 attitudes, social pressure and facilitating conditions are factors influencing university students\u27 adoption of mobile money services in Tanzania higher learning institutions. This study recommend that, for speeding up the adoption of mobile money services, services provider should attract more peer pressure that could help to increase mobile money adoption among university students

The Influence of Agency Banking and Mobile Money Services on Farmers’ Welfare in Mvomero District, Tanzania

In many developing countries inadequate and poor access to appropriate financial services has been one of the major challenges facing smallholder farmers particularly in rural areas. The limited access to financial services make rural farmers confine themselves to poor low-risk crops and sub-optimal inputs, which results in lower yield and poor household livelihoods. In recent years agency banking and mobile money services have emerged as one of the major means of financial services among many rural communities in Tanzania. The growing literature on the role of agency banking and mobile money in promoting financial inclusion in Tanzania has been widely reported, with a less focus on farmers’ livelihoods. This paper examines the influence of agency banking and mobile money services on farmers welfare with the case of Mvomero districts, Morogoro region, Tanzania. A mixed approach of qualitative and quantitative methods was applied in this study. Major techniques used in data collection included documentary review, household questionnaire, Key Informant Interviews (KII), Focus Group Discussions (FGD) and field observation. Data were analysed by descriptive statistics and content analysis techniques. The results show that the presence of agency banking and mobile money services has promoted improved saving and enhanced agricultural investments among rural farmers which contributes to improvement of farmers’ welfare in Mvomero district. The study recommends that the government should promote the availability of agency banking to various rural communities because they stimulate agricultural investment and improved household welfare which consequently promotes rural transformation in general. Keywords: Agency banking, mobile money, farmers’ welfare, Mvomero district. DOI: 10.7176/JESD/14-12-07 Publication date:June 30th 202

Factors influencing the usage of mobile money services in Ghana

The ambiguity and convenience of mobile phones has brought about new values and opportunities that no one foresaw in the delivery of financial services. It has brought about significant changes and sustainable growth as well as economic opportunities for the unbanked population and the emerging countries. According to the financial inclusion insights (FII), digital bank account in Ghana is more common than any other FII country in Africa including Kenya and Tanzania. Nevertheless, mobile money has not reach same penetration as that of their counterpart in Kenya and Tanzania. Mobile money in Ghana has been remittance/fund transfer focused, limiting the use of it for other financial transactions such as savings and payments of goods and services. The main objective of the research is to investigate the critical factors influencing the full adoption of mobile money platform and its auxiliary services in Ghana by adopting the Unified Theory of Acceptance and Use of Technology (UTAUT) model. The model predicted that performance expectancy (PE) and social influence (SI) significantly affect behavioural intention to use mobile money in Ghana. The study applied both quantitative and qualitative research methods. Questionnaires and interviews were used as primary data and then analysed using SPSS. The findings revealed that performance expectancy, social influence, and the fact that Ghana is not a cashless economy remain the major factors limiting m-money usage in Ghana. Ghanaian consumers however are willing to use m-money but there exist significant impediments towards the adoption and use of m-money in Ghana

The “Evolution” of Regulation in Uganda’s Mobile Money Sector

Uganda’s mobile money sector has grown rapidly since its introduction in 2009. As at the last quarter of 2015, there were 21.1 million registered mobile money users in the country, representing a penetration of about 54%. As well as providing a convenient, cheap and safe means of money transfer, mobile money has spurred increased financial inclusion, which grew from 28% in 2009 to 54% in 2013. The rapid growth has happened under conditions of “light touch” regulation of the sector, which allows the first mover to reap the rewards of investments made, but raises potential competition issues. The mobile money sector, much like the telecommunications sector, is characterised by network externalities, lock-in effects and high barriers to entry that can give rise to a concentrated sector with a single dominant player. This article considers the effect of light touch regulation on the competitive dynamics in the mobile money market in Uganda and contrasts this with the experience in Tanzania, where regulation evolved from a light touch style to a more comprehensive framework as the sector grew.CA2016www.wits.ac.za/linkcentre/aji

Mobile Money, Child Labour and School Enrolment

YesThis paper analyses the impact of household adoption of mobile money services on child labour and schooling in Tanzania. The paper uses data drawn from the Tanzania National Panel Surveys (TNPS), for the survey periods as follows: 2008/09, 2010/11, 2012/13, and 2014/15. The TNPS are national representative surveys conducted by the National Bureau of Statistics of Tanzania in collaboration with the World Bank Living Standards Measurement Study-Integrated Surveys on Agriculture (LMSA-ISA). The surveys collect detailed information on individual, household, and community-level characteristics. The panel nature of the TNPS allows for the same households to be interviewed over time. The study uses a difference-in-differences approach, and instrumental variables strategy to investigate the nexus between mobile money adoption and child labour and school enrolment in Tanzania. The findings of this study reveal a positive and significant effect of mobile money adoption on school enrolment, but a negative effect on children’s labour market activities. Moreover, the study identifies heterogenous impacts across child’s gender and age; and remittances receipt and education expenditure are the potential pathways through which mobile money adoption affects child labour and school enrolment. Overall, the results suggest that policies that enhance financial inclusion such as the introduction of mobile money can be effective in improving child’s school enrolment and a decline in the incidence of child labour

The Role of User-Agent Interactions on Mobile Money Practices in Kenya and Tanzania

Digital financial services have catalyzed financial inclusion in Africa. Commonly implemented as a mobile wallet service referred to as mobile money (MoMo), the technology provides enormous benefits to its users, some of whom have long been unbanked. While the benefits of mobile money services have largely been documented, the challenges that arise -- especially in the interactions between human stakeholders -- remain relatively unexplored. In this study, we investigate the practices of mobile money users in their interactions with mobile money agents. We conduct 72 structured interviews in Kenya and Tanzania (n=36 per country). The results show that users and agents design workarounds in response to limitations and challenges that users face within the ecosystem. These include advances or loans from agents, relying on the user-agent relationships in place of legal identification requirements, and altering the intended transaction execution to improve convenience. Overall, the workarounds modify one or more of what we see as the core components of mobile money: the user, the agent, and the transaction itself. The workarounds pose new risks and challenges for users and the overall ecosystem. The results suggest a need for rethinking privacy and security of various components of the ecosystem, as well as policy and regulatory controls to safeguard interactions while ensuring the usability of mobile money.Comment: To be published in IEEE Symposium on Security and Privacy 202

Mobile Money Transfer in Kenya: An Ethical Perspective

The main intent of the research project was to diagnose the ethical and moral issues in mobile money transfer in Kenya. The research seeks identify technical and ethical issues which the mobile money transfer agents and mobile industry operators have been surpassing while pursuing profit motives in Kenya. The research employed various ethical theories, which include; Virtue ethics, Deontological ethics, Teleological ethics and Ethical learning and growth. A survey questionnaire was developed and employed to collect data from 200 Kimathi university College of Technology (KUCT) students in Central region, Kenya and 100 employees of mobile money transfer Vendors operating in Nyeri, Thika, Murang’a, Karatina, Kiambu, Nyahururu, Kerugoya and Naru Moru within Central province of  Kenya, as a sample of the entire Country. This was because of the commonality in the use of mobile money transfer services in all parts of the country. The findings were derived from the comments of the focus groups discussion and the vendor employees, which established that ethical theories and values have not been adopted by mobile players in the money transfer technologies, despite having them.  Despite a number of researches in this area which have largely focused on mobile money transfer technology and their related benefits, both in Africa and Asia such as Tanzania and Malaysia, only to mention a few, this research project goes on further to contribute to the body of knowledge to engrain ethical and moral values in mobile money Transfer in Kenyan context, as it is becoming a centre of commerce in East and Central Africa. From the diagnosis of the of the responses from the focus groups and vendor employees, supported by ethical theories and values, mobile players should among other recommendations adopt anti-money laundering policy to avoid cases of unethical conduct through money transfer technologies. These are the main recommendations. In conclusion, it is very imperative that mobile players adopt ethical theories and values, implement them and continue to review these technologies of money transfer to avoid potential misuse. This was the achievement of these research objectives

Why Mobile Money Users Keep Increasing? Investigating the Continuance Usage of Mobile Money Services in Tanzania

This study examined factors that affect continuance usage of mobile money services in Tanzania. The Theory of Planned Behavior was adopted as a theoretical foundation of the study. The theory was further extended by including the constructs of perceived cost, perceived trust and satisfaction as determinants of mobile money service continuance usage behaviour. A total of 309 valid and reliable responses collected using questionnaires were used for data analysis. The data were analysed using Structural Equation Modeling (SEM) approach. The findings depict that perceived trust, attitude and perceived behavioral control have significant influence on continuance behavioral intention while perceived trust, satisfaction and continuance behavioral intention have significant influence on continuance usage behavior. The study provides a number of useful implications for scholars and policy makers which could be used to enhance and provide sustainable mobile money services to users