THE CONTRIBUTION OF MOBILE MONEY TECHNOLOGY TO FINANCIAL INCLUSION IN RURAL AREA. CASE STUDY OF NYABIHU DISTRICT (2021-2023)

Abstract

The study aimed at evaluate the contribution of mobile money technology to financial inclusion in rural area, then specifically to determine the services provided by mobile money technology in Nyabihu District and To find out the contribution of mobile money technology on financial inclusion in Nyabihu District; The study used a descriptive research design and used also mixed method (Quantitative and qualitative methods) in data collection and analysis. The population size for this study was composed of 92 mobile money agents. Respondents were selected using purposive sampling technique. The study used both primary and secondary data as sources of information. Primary data were collected by using questionnaire and secondary data were collected using documentary review. Data collected was recorded and coded into (SPSS) software version 16.0 and they were analyzed using frequencies. The results generally show that mobile money usage has played a very critical and significantly role in assisting people or subscribers of the mobile money services to effectively enjoy the mobile money services such as the cash withdrawal, cash deposit and purchase of recharge cards and transfer of cash among various subscribers. The mobile money services has served as a means through which the people and the subscribers of mobile money have turned to look for alternative ways and means for either engaging in any form of financial transactions ranging from cash deposit to transfer of cash to relatives and business partners. The mobile money usage has tremendously affected the behavioral intention of people to save with banks, in that the services have greatly provided an alternative means of transferring, depositing cash, purchasing of recharge cards and above all enhanced easy and comfortable means through which the subscribers or people can effectively withdraw cash as and when the need arises. The implication is that, withdrawal from mobile money by means of financial transactions has an impact on customer intention to save and people care when it comes to withdrawal of money from mobile money. Again, withdrawal assist people of meeting daily financial obligation with regards to any transaction, hence have much impact on the mobile money services. Briefly, cash withdrawal and cash deposit is specifically relevant and largely making a significant contribution to the prediction of customer behavioral intension to save. The researcher recommended that, Both the subscribers and the mobile money merchant should intensify the use of cash deposit and cash withdrawal as it is making a unique contribution to behavioral intention to save and also merchant should equally train mobile money service providers so as to avoid petty mistake in transferring money to wrong line. It is further suggested that the government should pass law and legalize the mobile money operation in the country; The services should be constantly reliable so as to enhance satisfaction of people and delight.