Mobile Banking and Financial Inclusion in Burundi
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Date
2023-11
Authors
Ntahomvukiye, Blaise
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Financial and banking systems in most of the developing countries are still a major issue of concern from the accessibility to practicability. In Burundi, as the country records a big
number of uneducated people, a great number of Burundians do not have the culture to keep moncy in the formal banks or do financial transactions through formal and classical Banking
systems. This severely affected the standard of living as well as prevent the people from
cnjt())'!ng the benefits offered by the financial sector. Financial inclusion is all about people
enjoying and accessing financial services that the same sector has to offer. This study has as
general objectives, the effect of mobile banking on financial inclusion in Burundi and the
three specific objectives are: the effect of mobile money distribution on financial inclusion
in Burundi, the effect of mobile money transactions on financial inclusion in Burundi, and
the effect of the value of mobile money transactions on financial inclusion in Burundi. The
theories which were used in this research are : the theory of the financial innovation, the
theory of financial intermediation, as well as the technological acceptance model theory
(TAM) so that all variables in the study can be well supported. As Burundi counts more than
12 Banks and 4 telecommunication companies of which all offer mobile money services.
Econetleo, Lumitel and KCB Mobi were sampled to examine the effect of mobile banking
and financial inclusion in Burundi. Secondary data from other from other research
publications, data offered by the central bank of Burundi, Publications from Econetleo, and
Lumitel, Burundi Bureau of statistics, the annual report from ARCT, as well as official
newspapers between the period of 2012 and 2019 were used. Descriptive statistics was
applied and the data from the sources mentioned above was analyzed using SPSS software,
the analysis and interpretation were done based on the figures in the tables. The findings
were presented using tables and figures which depicted that there was a consistent increase
in the number of mobile money distribution agents, number of mobile money transactions as
well as the value of mobile money transactions. The regression findings showed that the
number of mobile money distribution agents were not statistically significant hence not an
important determinant of financial inclusion in Burundi, the study pointed out that mobile
money distribution had a p value of 0.055>0.05 an indication that the variable did not
significantly influence financial inclusion. The second specific objective which is mobile
money transactions and financial inclusion in Burundi, the significance value showed that
the number of mobile money transactions was statistically significant and an important
determinant of financial inclusion, the findings also showed that the p value of mobile money
transactions had a p value of 0.000<0.05 an indication that the variable significantly
influenced financial inclusion. The last specific objective which is the value of mobile money
and financial inclusion in Burundi. The study pointed out that mobile money distribution had
a p value of 0.06>0.05. recommendations are addressed to banks and institutions that offer
mobile financial services in Burundi, not only Ecocash, Lumicash and KCB Mobi, but also
BANCOBU, BGF, BBCI, BCB, FINBANK, IBB, ECOBANK, DTB, BIDF, BUJE, BHB.
They should focus on core strengths, such as customer confidence, the ability to offer a wider
range of mobile financial services than other market players, and a deeper understanding of
customer needs. Continually update their understanding of customer needs. If the solutions
are no longer in line with customer needs, adapt them accordingly. Engage with regulators
where possible, through dialogue. Build on existing financial services offered to customers
to determine the best way to launch or improve the mobile money services offered. Provide
those services by always considering the country context, level of financial inclusion, nature
of existing mobile money services and level of usage. The ministry of communication and
telecommunications of Burundi, shareholders, the central bank of Burundi, and political
decision makers would use this research in designing sound policies to develop the sector of
mobile financial services.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Finance) Of Kenyatta University, November 2023
Keywords
Mobile Banking, Financial Inclusion, Burundi