EFFECT OF MOBILE BANKING SOLUTIONS PROJECT ON THE FINANCIAL INCLUSION: THE CASE OF BANK OF ABYSSINIA

Abstract

This study aimed to investigate the effect of mobile banking solutions project on financial inclusion, focusing on the case of Bank of Abyssinia in Addis Ababa, Ethiopia. The research employed a quantitative approach, using a survey questionnaire to collect data from 302 employees of the bank. The data was analyzed using descriptive and inferential statistics, including Pearson's correlation and multiple regression analysis. The research methodology involved a quantitative approach, using a survey questionnaire to collect data from 302 employees of the Bank of Abyssinia. The data was then analyzed using descriptive and inferential statistics, including Pearson's correlation and multiple regression analysis. The findings revealed a significant positive relationship between various aspects of mobile banking solutions project (mobile money transfer, mobile payment for goods, mobile account management, and mobile credit facilitation) and financial inclusion. Specifically, mobile money transfer showed the strongest influence on financial inclusion, followed by mobile credit facilitation. The study also found that these factors collectively explained 67.2% of the variation in financial inclusion. The study concluded that mobile banking solutions significantly contribute to financial inclusion in the Bank of Abyssinia. It underscored the role of mobile banking in bridging the gap between the unbanked population and formal financial services, and emphasized the need for financial education to ensure effective utilization of these services. Based on the findings, the study recommended that the Bank of Abyssinia should develop a comprehensive mobile banking suite with features like detailed statements, account linking, mobile account creation, and improved management functionalities. It also suggested promoting mobile money transfer and mobile payment for goods as key tools for financial inclusion, and implementing educational programs highlighting the benefits of mobile banking services.