CHALLENGES AND PROSPECTS OF MOBILE BANKING SERVICE: THE CASE OF LION INTERNATIONAL BANK S.C

Abstract

This research project was initiated and implemented with the aim to document the challenges and prospects of mobile banking service in the case of Lion International Bank S.C. at Addis Ababa, Ethiopia. In order to achieve study objectives and answer the research questions a mixed approach to research was adopted. Methods included: survey by questionnaire, key informant interview and official document examination. The response rate for the survey was 83%. Primary data were collected through administering a questionnaire having both closed- and open-ended questions and conducting key informant interview. The questionnaire was distributed to a total of 148 sampled respondents and the response rate was83%. Descriptive statistical and qualitative analysis results showed that the case study organization has been facing internal and external challenges in implementing and delivering its mobile banking service or products in the city. The internal challenges or factors relate to scope of marketing practices and management commitment in key areas like continuous improvement and technological innovations. Whereas, the external factors relate to ICT infrastructure, lack of trust and feel confident on any security aspects of the service, strict NBE policies, procedure and approval system for implementation of the service and other government provisions or restrictions in the area. The study also revealed major prospects of mobile banking service Such as attractive service delivery way to retain mobile banking service users, increasing level of Customer request for mobile banking service and Customer satisfaction with lion mobile baking Service has increased from time to time and the bank provides continuous strategic direction for improvement of mobile banking service and also government’s new plans and proclamations which are in pipelines are indicative of sound prospects. To this end, recommendations are forwarded for consideration by the study organization and other parties.