Impact of Mobile Money Adoption and Sustainability of SMEs in Nigeria
Mobile banking has the potential to lower transaction costs, such as those incurred by traveling, which is one of its potential benefits. In the earlier years, consumers in rural regions had to drive to the closest towns in order to get banking services.
This was because there were no banks in the rural areas itself. With the advent of electronic banking, any customer who has a mobile phone is now able to access the services from the convenience of their own living room, regardless of their location in the world.
The Nigerian Commercial Bank and other financial institutions do not have the capability necessary to open bank branches in every region of the nation. Since of this aspect, a large group of four individuals who would have liked to take use of the services offered by a certain bank were unable to do so because such services were not available in the area.
The introduction of mobile banking into the community has resulted in individuals being able to conduct financial transactions from a bank that is located farther away while still being able to interact efficiently using mobile phone text messages.
There is less of a demand than there formerly was for the opening of new bank branches. This results in cost savings for the Kenya Commercial Bank’s investments in personnel and infrastructure.