Examining the Factors Influencing Mobile Banking Adoption in Somalia: A Quantitative Study

Abstract

Somalia has a large mobile money user base, with over 83% of mobile phone users using mobile money services. Compare this to the penetration rate of financial services, which is just 5% among rural populations and 1% among internally displaced people. This paper seeks to determine the factors influencing mobile banking adoption in Somalia Through a comprehensive survey involving 130 participants, integrating online as well as face-to-face approaches was employed. The data that was collected that subsequently assessed employing the SPSS software, facilitating a thorough investigation into the subject. This research reveals that perceived ease of use, perceived usefulness, and trust significantly influence individuals' intentions to adopt mobile banking services in Somalia. Focusing on enhancing the user experience, emphasizing practical benefits, and fostering trustworthiness emerges as crucial strategies for boosting mobile banking adoption rates. Notably, perceived cost and risk play a lesser role, possibly owing to cost- effective transaction options and high trust in the reliability of mobile money services. These findings emphasize actionable steps for mobile banking stakeholders in Somalia, pointing towards the importance of user-centric enhancements, clear communication of practical advantages, and continued efforts to build and maintain trust in the mobile banking ecosystem. Based on these findings, a recommendation would be to focus on improving the user experience of mobile banking applications in Somalia. Furthermore, collaboration between mobile network operators, financial institutions, and the government could foster a supportive environment for mobile banking adoption, leading to increased accessibility and usage for the broader population in Somalia.