Mobile Banking Services and Financial Performance of Selected Youth Enterprises in Nairobi City County, Kenya

Keywords: Mobile Banking Services, Financial Performance, Youth Enterprises


Mobile Banking is a mobile-based technology that increases access to financial services hence aiding in the fight against poverty by facilitating productive investment and business expansion. This technology allows customers to communicate with financial institutions via a mobile phone, be it telephone or digital, which then creates information about data communications. The advantages of mobile banking, such as simplicity, accessibility, security, and usability, have led to the development of m-banking and forced commercial banks in Kenya to change their traditional way of doing business to incorporate actual transactions into their business. Using this technology, a consumer can claim a bank balance, obtain a loan, save, pay for goods and services, pay for contributions such as NHIF donations, pay salaries and bills such as electricity and water. In Kenya, there are more than 65,000 mobile money agents such as M-Pesa stores. These mobile money shops, unlike commercial banks, are distributed nationwide in rural and urban areas. Research has shown that businesses that maintain the technology barrier are very high and now accept banking services from Kenyans closed by commercial banks. The study sought to find out the results of mobile banking services and the financial performance of selected new businesses in Nairobi City County. The following objectives guided the study; check mobile banking savings services, mobile banking services, leading banking services and mobile banking transfer services with selected youth finance services for selected youth businesses in Nairobi City, Kenya. The research focused on the Mobile Banking Business Model, Technology Acceptance Model (TAM) and Theory Intermediation Theory. The study used descriptive research formats. Important data was collected through questionnaires, while the collection of secondary data on the financial performance of businesses over the past five years was done using datasheets. The validity of the questionnaires was determined prior to testing, flight studies and expert judgment, while Cronbach's Alpha assessed the reliability of the materials. The survey identified 56 managers of selected Youth businesses in Nairobi City who were managers or business owners. Descriptive statistics: mean, standard percentage deviations and quantities were used in the data analysis. Different details include correction for correction analysis. The research results were presented using tables, graphs, charts, percentages and frequencies to help simplify data comparisons and conclusions. Findings have shown that mobile banking services have a positive and visible impact on the financial performance of selected youth businesses. With the widespread use of mobile services, mobile banking is expected to continue to grow. Mobile banking gives customers an easy opportunity as it allows them to perform their duties on the go. However, there is a need to remove any existing barriers and challenges that could prevent easy access to mobile banking by customers. The study, therefore, concludes that as small businesses expand their mobile banking system, customer sensitization and training on mobile banking applications reduce threats and risks to mobile banks. This enables small businesses to attract more mobile customers to their banks and thus perform better financially.

Author Biographies

Vincent Aming’a Aberi

Correspondent Author, School of Business, Kenyatta University, Kenya

Ambrose O Jagongo

Lecturer, School of Business, Kenyatta University, Kenya


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How to Cite
Aberi, V., & Jagongo, A. (2022). Mobile Banking Services and Financial Performance of Selected Youth Enterprises in Nairobi City County, Kenya. International Journal of Current Aspects in Finance, Banking and Accounting, 4(2), 60-76.