The Impact of Mobile Banking on Consumer Savings Behavior

Abstract

Internationally, mobile banking offers the international financial system a platform to support the inclusion of the poor in the mainstream and address the needs of the under banked in developing countries. This review focuses on studies that have examined the impact of mobile banking on consumer behavior, savings behavior, customer satisfaction, financial inclusion and technology adoption in emerging markets, Asia, and Africa. According to empirical studies, mobile banking has been positively linked to savings (formal and informal), purchasing and consumption and customer satisfaction. Factors influencing customer satisfaction include perceived usefulness, ease of use, security, dependability, convenience, speed and accessibility. Several studies stress sociodemographic factors influencing mobile banking adoption and usage. These factors include age, gender, education, income and employment status. Mobile banking is thus recognized too as an important mechanism to provide financial services to rural, low-income and unbanked populations via low-cost, technology-driven financial service delivery platforms and thereby improving financial inclusion. Key barriers to wider adoption include perceived risk, infrastructure, digital literacy and an urban-rural divide in access to mobile banking. Across the literature, it has been found that socioeconomic gains of mobile banking are best realized with collaboration between banks, mobile network innovators, policymakers, and with the design and awareness of consumer-centric solutions.