Inkanyiso: Journal of Humanities and Social Sciences

The AJOL site is currently undergoing a major upgrade, and there will temporarily be some restrictions to the available functionality.
-- Users will not be able to register or log in during this period.
-- Full text (PDF) downloads of Open Access journal articles will be available as always.
-- Full text (PDF) downloads of subscription based journal articles will NOT be available
We apologise for any inconvenience caused. Please check back soon, as we will revert to usual policy as soon as possible.

Factors influencing the adoption of mobile financial services in the unbanked population

Aulelius Lema


To deliver financial services to the poor has remained a challenge for many decades. However, the growth of technology has emerged as a key solution of financial service delivery to the poor. Financial services delivery through mobile phone platforms can be provided where formal financial institution like banks cannot reach. Despite these developments, the use of these services by the poor in the unbanked areas is very low. This study investigated the factors influencing the adoption of mobile financial services in the unbanked population. We employed a cross-sectional design by collecting data at a single point in time. We used six variables in the study based on the Technology Acceptance Model, TAM. The variables were Perceived usefulness, Perceived ease of use, Perceived trust, Perceived cost, Perceived risk and Social influence. The construct validity of the measurement items was established by using confirmatory factor analysis conducted using Structural Equation Modelling (SEM) and the reliability was established by using Cronbach’s Alpha coefficient. The hypothesis was tested by using multiple regression analysis. The sample size used was 250 respondents selected from the study area. The study revealed that perceived usefulness, perceived cost and social influence had a significant influence on the adoption of mobile financial services. Perceived ease of use, perceived risk and perceived trust were found to have an insignificant influence on the adoption of mobile financial services. The implication of the findings forms the basis for product or service development, pricing, marketing and policy formulation. In this study we recommend a longitudinal research to be conducted in order to understand the influences of the adoption behaviour at different level of market maturity and points of time.

Keywords: Mobile financial services, Adoption, Tanzania

AJOL African Journals Online