EFFECTIVENESS OF MOBILE BANKING SERVICE: THE CASE OF DASHEN BANK S.C

Abstract

Mobile banking is widely referred to as branchless banking, delivery of financial services outside conventional bank branches .Mobile banking allows banks to expand services in to areas where they do not have sufficient incentive or capacity to establish a formal branch, which is particularly true in rural and poor areas. The general objective of the study was to measure the effectiveness of applying mobile banking service in Dashen Bank. From this general objective, a descriptive research design was employed to conduct this study .For data analysis purpose both quantitative and qualitative research approach was used. Out of the total 83 population 51 samples were selected by using judgmental sampling method. Both primary and secondary qualitative data were collected for the purpose of this study from the E-banking and IT Departments of Dashen bank at the head office level and the bank’s different branches respectively. The collected data was analyzed by using descriptive analysis such as tables and percentages. From the analysis of the collected data, the findings revealed that: cash transfer, bill payments, check balances and cash operations are some of the major practice of the Mobile – banking services in Dashen bank. Many different customers can access this service using their mobile phones. On the View point of the bank Cost reduction, reliability and service security are some of the benefits of using Mobile banking. Low level of internet penetration and poorly developed telecommunication infrastructure, lack of awareness are among the major challenges of Mobile-banking service of the bank Moreover, failure to address the service to customers as much as expected led the bank to experience inefficiency compared to other banking services it provides.