Determinants To Mobile Banking Among Youths In Rural Areas: A Case Of Mashonaland Central

Author

Charmaine Murefu

Title

Determinants To Mobile Banking Among Youths In Rural Areas: A Case Of Mashonaland Central

Abstract

Financial inclusion remains a challenge, particularly for young adults in rural areas (World Bank, 2023). Mobile banking offers a potential solution by providing convenient and accessible financial services (Demirguc-Kunt, Leora, Klapper, L., Singer, D., & Ansar, H., 2018). This study investigates the factors influencing mobile banking adoption among young adults in Mashonaland Central, Zimbabwe, employing the UTAUT (Unified Theory of Acceptance and Use of Technology) model as a theoretical framework (Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D., 2003). Building on previous research (e.g., Masuku, 2020; Chitiga, 2021), which explored mobile banking in the Zimbabwean context, this study contributes to the growing body of knowledge by examining the specific case of young adults in a rural setting. The researcher examined key drivers like performance expectancy, effort expectancy, and social influence, alongside potential constraints such as facilitating conditions. Understanding these determinants was crucial for promoting financial inclusion and designing mobile banking services that cater to the specific needs and preferences of young adults in rural Zimbabwe. This research contributes to the knowledge base on mobile banking adoption in developing economies and its potential to empower young adults. The results suggested that SI, PE, and FC might not have statistically significant effects on usage based on the high p-values. However, further analysis with a larger sample size might be necessary for confirmation. Effort expectancy, however, showed a statistically significant effect with a negative coefficient (Exp(B) < 1). This unexpected finding warrants further investigation into the specific context and the reasons behind this negative relationship. Government support for programs targeting this demographic is key. Mobile network providers can play a crucial role in improving coverage and offering affordable data plans. Expanding the network of mobile money agents in rural areas can also provide convenient cash in and cash out. Educational programs specifically designed for rural communities, along with showcasing success stories of young adults who have benefited from mobile banking can create a positive influence and encourage wider adoption.

Date

May 2024

Publisher

BUSE

Keywords

UTAUT

Social Influence

Facilitating conditions

Performance expectancy,

Supervisor

MR KUSOTERA