Determinants of Mobile Banking Adoption by Customers of Microfinance Institutions in Nairobi County in Kenya

Mobile technology usage has had various impacts on individuals and enterprises at different levels. Several factors have been sighted by different researchers as contributing either positively or negatively to the adoption of Mobile banking technology. Banks have implemented this technology to enable them reach more customers due to its ubiquitous nature and to reduce the cost of putting up new branches in their areas of operations. For this effort to be felt and for the technology to be implemented effectively, there is need to understand the factors contributing to its adoption by the customers. This study was carried out to investigate the effects of important factors that affect adoption of mobile banking technology by customers of Microfinance Institutions in Nairobi County, Kenya. A sample of 210 customers were selected randomly and the researcher extended the Technology Acceptance Model (TAM) framework. The study found that both perceived usefulness and perceived ease of use positively correlate and affects adoption of mobile banking technology positively. On the other hand, Perceived Risk and Perceived transaction costs were found to have negative correlation with the adoption of mobile banking technology.