The study makes an analysis of mobile money and retail banking services in Kumasi Metropolis using a sample of 130 respondents. In order to conveniently interpret the data, the results are presented in tables and charts. A number of key findings emerged from the field survey where the study shows that the retail banking in Kumasi faces peculiar challenges in service quality, distribution, and cost. However, the challenges and perceptions of the retail banking in the lives of mobile money account users allow the adoption of mobile money services to thrive among the lower-income users. Based on the findings of the study, it was noted that the increasing use of mobile money services among the low earning income category is highly associated with decreases in retail bank users in a way that this tends to pose threat to the growth of retail banking. It is however recommended that banks should consider the possibility of Collaboration Model to involve mobile network operators in the mobile payments value chain that are user friendly and develop them so as to enable deposit/withdraw of money using mobile phone which will meet different customer requirements and capture market niches that expands on market share leading to improved financial performance.

1.1 Background of the Study
Retail banking entails services that commercial banks to offer strictly to individual customers. The term also applies to a section of the bank that has direct dealings with the customers. Some of the services offered by retails include; personal loans, transactional accounts, savings, mortgages, credit and debit cards (Wikipedia, 2016). Increasingly, the extent of mobile money services is undoubtedly revolutionising retail banking in Africa without exempting Ghana. The option of mobile money service has caught up so fast that it has presented an alternative financial service to many Africans to use mobile phone as a platform for payment and receipt of a form of currency termed ―Mobile Money.

A cursory study of the introduction of mobile money in Africa revealed that the idea of mobile money started in 2002 when the institute of International Development-UK funded research found citizens of Botswana, Uganda, and Ghana were of their own accord using airtime as a substitute for money transfer. Following this, in 2004 MCel in Mozambique introduced the first authorized airtime unit trade off which was an antecedent towards M-Pesa. The idea was further developed through a series of piloting to implement changes to the initial design. Later in April 2007, students developed soft wares during their project in Kenya (Appiah-Danquah, 2014), Vodacom and Safaricom, mobile network operators (MNO) were not considered and given the mandate to take deposits. Banks established new mobile phone transfers and money payment systems, known as M-Pesa (M for mobile, pesa is Swahili for money) (Mengich et al., 2014).

M-Pesa was successful in Kenya and several telecoms in Africa started adopting this into their services (Appiah-Danquah, 2014). Mobile Telecommunication Network (MTN), Ghana‘s leading telecommunications provider, was the first to partner nine to launch mobile money services in Ghana. Subscribers of MTN after the launch could undertake transactions using their mobile phones. Subscribers accessed the service without necessarily opening a bank account (Oluniyi, 2009 ). Mobile money service is utilised for various reasons by Ghanaians to send and receive money from friends and loved ones, payment of fees, remittances, and payment of merchants to aid critical business processes (Kofigah, 2010).

The benefits of mobile money include convenient savings, ease of use, bringing the unbanked into a virtual banking, transformation of the economy among others (Mengich et al., 2010). This revolution is gradually transforming and upgrading the use of mobile phones from ordinary making and receiving calls, substituting for travelling efforts, allowing quicker and easier access to information. In most developing countries, the number of bank account owners is fewer than the number of mobile phone owners (Nandhi, 2012). In Ghana, while bulks of Ghanaians have no access to a bank account or formal financial service because mobile money offers new possibilities for making financial services more inclusive in Africa (United Nations, 2012).

Unlike conventional banking and financial services, mobile money also offers the possibilities to make deposit, withdrawal and to transfer money at a low cost compared to the traditional banking system where some transactions would be done within the premises of the bank where people get stuck in queues. The economy is practically moving away from a cash economy to a cashless electronic money system. Money transfers institutions and Banks are facing fierce competition from Airtel Money, MTN Mobile Money, Tigo Cash (Sakyi, 2014) and now Vodafon Cash. In all, there are four Mobile Network Operators (MNOs) in Ghana offering mobile money services. As a result, there was a need to make a comparison study between retail banking and retail banking.

1.2 Statement of Problem
Using your handset to receive and send money is described as mobile money services (Mauree, 2013). In Ghana, savings and loan companies, rural banks and commercial banks are mandated to offer financial services for people living in urban and rural environments (Boakye-Yiadom, 2009). To revolutionize the financial services of the country to address the needs of individuals and small businesses, Mobile Network Operators (MNOs) have made investments to create networks that reach further and deeper into rural areas (United Nations, 2012). These networks provide mobile money service to many Ghanaians. In 2014, the telecommunications giant, Mobile Telecommunication Network (MTN) Ghana witnessed an unprecedented growth of its subscribers to 5million. According to, Kunateh (2014) the growth of mobile money facilities serve as a threat to microfinance institutions in Sub-Saharan Africa. People prefer financial services that are reliable, convenient and affordable (Kamukama & Tumwine, 2012). MMS has created unmatched competition between the Banks and Mobile Network Operators. According to Sturmius (2012), MMS growth is gradually taking many customers away from the banking hall and has significantly affected retail banking which has further affected liquidity.

In the review of literature, it was found that no attempt was made to make analysis of mobile money and retail banking service in Kumasi hence a knowledge gap and this thesis proposes to bridge this gap.

1.3 Objectives of the study
The study makes an analysis of mobile money and retail banking services in Kumasi Metropolis. The specific objectives include the following;

1.  To examine users preferences of mobile money services and retail banking services in Kumasi Metropolis;

2.  To assess the accessibility of mobile money and retail banking services in Kumasi metropolis;

3.  To find out the challenges of retail banking in Kumasi Metropolis.

1.4 Research Questions
The following unanswered questions motivated the study;

1.  Do users prefer mobile money services to retail banking services in Kumasi Metropolis?

2.  Is mobile money service more accessible to retail banking in Kumasi Metropolis?

3.  What are the challenges of retail banking in Kumasi Metropolis?

1.5 Significance of the Study
Since Money, in any form, remains the set of asset in an economy used regularly by people as a medium of exchange, this study will be a significant endeavour in establishing a statistical relationship between the usage of mobile money services and retail banking by people living within Kumasi metropolis to carry out their financial transactions and satisfy their financial needs. The study findings will be useful in contributing to the pool of knowledge on retail banking and MMS.

1.6 Scope of the Study
The study focuses on mobile money services within Kumasi metropolis. The population of study was categorized into four: Bank account holders who are not mobile money subscribers, Mobile money subscribers who are not bank account holders, Bank account holders who seldomly use mobile money services, and Mobile money subscribers who seldomly use bank accounts. For the purpose of this research, the focus is on determining the fraction of mobile money services in the Kumasi metropolis that use mobile money service to carry out their financial transactions. This category of people use mobile money services to carry out their businesses and financial transactions and the impact of the mobile money services on retail banking within the Kumasi metropolis.

1.7 Organisation of Study
The thesis is prepared in five chapters. Chapter One is the introduction and consist of the background of the study, objectives of the study, statement of the problem, hypothesis of the study, significance of the study, scope of the study (limitation/delimitations), and organisation of the work. Chapter Two reviews theoretical and empirical literature relevant to the study. The chapter opens with an introduction and discussion of the research process and concludes with the summary of what previous researchers have said and how they relate to the subject of this study. Chapter Three presents the research methodology for the study. The presentation and analysis of data collected for the study are also discussed in Chapter Four. Chapter Five is the summary and conclusions which summarizes the entire study, giving recommendations to set a platform for further study to be conducted on the subject. The chapter concludes with list of references and appendices used in the entire study.

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Item Type: Ghanaian Topic  |  Size: 63 pages  |  Chapters: 1-5
Format: MS Word  |  Delivery: Within 30Mins.


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