Mobile branchless banking is a contemporary banking trend that has completely revolutionized the art of money transfer in areas where it is being practiced. For instance, Mpesa money transfer has enabled creating a plethora of jobs and business opportunities in Kenya, thus raising Kenyans’ living standards who practice this type of banking. Branchless mobile banking has created employment opportunities directly and indirectly. Direct job creation involves people employed by this banking system like customer care, IT person, and solution providers, among others; on the other hand, numerous job opportunities spawn indirectly from the including marketing personnel, sales, and service providers. Moreover, mobile branchless Banking enables clients to access their finances whenever they need to use them instead of traditional banking, where one must physically reach the bank through customer care or using Automatic teller machine cards (ATM card).
The ease of finance accessibility creates the convenience of investment and the possibility of solving numerous financial problems with a click of a button. Mobile Branchless banking’s proximity gives the clients has contributed significantly to mobile banking’s success in increasing innovation and more benefits to organizations that use mobile banking. It is also important to note that most organizations operating mobile branchless banking have also included credit services that greatly enhance the customers’ financial convenience. Credit services enhance clients’ financial convenience because the services are mostly offered in third-world countries where poverty is part of most citizens’ lives. Mobile phones also facilitate transactions within mobile space-time, creating more possibilities like online shopping with payment solutions, live global markets, and other positive opportunities that mobile branchless banking has enabled.
The numerous benefits enjoyed by stakeholders in Mobile Branchless Banking are limited by innovation, social, and technical challenges depending on the factors that play a major role in the operation region. For instance, the significant challenges include instability in people’s income, regulatory barriers, and poor transport and communication networks. Most countries practicing mobile branchless banking are countries crippled with the challenge of poverty and political instability. All in all, this contemporary banking system has empowered the economy of the countries that practice it, leading to improved living standards and financial liberty among its citizens. Mobile cashless banking provides its clients with the freedom to transact online transactions that are available on digital platforms, thus opening the financial digital to endless possibilities.
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