Title: Simple mobile banking: learning from developing countries

Authors: José Luis Gómez-Barroso; Raquel Marbán-Flores

Addresses: Dpto. Economía Aplicada e Historia Económica, UNED – Universidad Nacional de Educación a Distancia, Pº Senda del Rey, 11, 28040 Madrid, Spain ' Dpto. Economía Aplicada I (Economía Internacional y Desarrollo), Universidad Complutense de Madrid, Campus de Somosaguas, 28223 Pozuelo de Alarcón, Madrid, Spain

Abstract: Despite their simplicity and manifest usefulness, mobile banking systems have hardly developed in the world's richest countries. On the other hand, some mobile banking initiatives have obtained resounding success in developing countries, as is the case of M-Pesa in Kenya. Among the reasons justifying their acceptance are context factors specific to those countries, and to be precise, the difficulty of accessing traditional financial services. But without ignoring these circumstances, an intelligent design during the exploitation phase is what has made mobile banking go from a fortunate concept to a successful innovation. This is why there are a priori no barriers preventing a similar process from occurring in developed countries as well. In fact, the profitability of initiatives such as M-Pesa is seducing enough to assert that, in spite of internet-through-mobile banking being available in smartphones, simple mobile banking can serve niche markets in wealthier countries such as the unbanked or those technologically weakly-equipped or weakly-skilled.

Keywords: mobile banking; m-banking; financial services; mobile communications; innovation; mobile money; developing countries; Kenya; M-Pesa; money transfers; online banking; internet banking; e-banking; electronic banking.

DOI: 10.1504/IJBIR.2014.064610

International Journal of Business Innovation and Research, 2014 Vol.8 No.5, pp.485 - 497

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 16 Aug 2014 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article