THE IMPACT OF MOBILE BANK ON ECONOMIC

DEVELOPMENT (CASE STUDY TELECOMMUNICATION AND

BANKS IN MOGADASHU-SOMALIA)

BY

SAID OSMAN ALI

ID NO. 1834

This Thesis Is Submitted In Partial Fulfillment of Requirement

for The Award of the Degree Bachelor of

Business Administration at Horseed

International University

APRIL, 2015
 DECLARATION

I, said osman Ali declare that this is my effort and original work and never been submitted

in any other academic purpose, higher institutions and universities for the award of

academic rewards.

Signed ………………………

Date………………………….

Said osman Ali

I
 APPROVAL

This thesis entitled The Impact of Mobile Bank on Economic Development Case Study

telecommunication and Banks in Mogadishu Somalia was done under my supervision and

ready to submit at Horseed International University.

Signed: ………………………………

Date: ………………….

Mr. Abditah Omar Gacal

II
 DEDICATION

I dedicated this thesis to my dear father

Osman Ali, my beloved wife Deqa Arab Ali and

my dear son Sahal Sa’id Osman.

III
 ACKNOWLEDGEMENTS

All praise is due to Allah al mighty, who gave me energy and chance to accomplish this

work successfully. Next, I would like to thank my friends who were very helpful and

understanding in many of my situation. their support and encouragement and helped me a

lot in completing this project successfully. I am gratefully acknowledge to the faculty of

Business administration, at partial of HORSEED INTERNIONAL UNIVERSITY. I

thankful to a number of individuals without their assistance directly or indirectly their

golden time, comments, and feedback on this research could not have been completed in

time. It was great appreciation that I acknowledge the contribution and support my

supervisor Mr. Abditah Omar Gacal whose time effort and guidance were highly beneficial

throughout my bachelor thesis. Thank you Mr. Abditah Omar Gacal, Abdullahi Artan

Ahmed, Ahmed Macalin Mohamed Dahir (Tall), Mohamed Dahir Abdi, and Mohamed Ali

Jama for their positive attitude and outlook; you are an incredible supervisors. Finally, we

would also like to express deep sense of gratitude to everyone, who contributed to this

project development process through encouragement, technical support, also thankfulness

people for filling questionnaire etc. for being helpful.

IV
Table of Contents
DECLARATION .................................................................................................................... I
APPROVAL ........................................................................................................................... II
DEDICATION ..................................................................................................................... III
ACKNOWLEDGEMENTS ................................................................................................. IV
TABLE OF CONTENTS ...................................................................................................... V
LIST OF TABLE ................................................................................................................ VII
LIST OF FIGURES ........................................................................................................... VIII
ABSTRACT ...................................................................................................................... VIII
CHAPTER ONE INTRODUCTION .................................................................................. 1
1.0 INTRODUCTION............................................................................................................ 1
1.1 BACKGROUND OF THE STUDY ................................................................................. 1
1.2 PROBLEM OF THESTATEMENT................................................................................. 3
1.3 PURPOSE OF THE STUDY ........................................................................................... 4
1.4 RESEARCH OBJECTIVES ............................................................................................. 4
1.5 RESEARCH QUESTIONS .............................................................................................. 4
1.6 THE SCOPE OF THE STUDY........................................................................................ 4
1.7 SIGNIFICANT OF THE STUDY.................................................................................... 5
1.8 OPERATIONAL DEFINITIONS OF VARIABLES ....................................................... 5
1.8.1 CONCEPTUAL FRAME WORK ................................................................................ 6
CHAPTER TWO REVIEW OF RELATED LITERATURE………………………………7
2.0 INTRODUCTION............................................................................................................ 7
2.1CONCEPT MOBILE BANKING ..................................................................................... 7
2.2 MOBILE BANKING ON ECONOMIC DEVOLOMENT ......................................... 10
2.4 SUMMARY ................................................................................................................... 12
2.5 CONCLUSION .............................................................................................................. 13
CHAPTER THREE METHODOLOGY.............................................................................. 14
3.1 RESEARCH DESIGN ................................................................................................... 14
3.2 RESEARCH POPULATION ......................................................................................... 14
3.2.1 SAMPLE SIZE............................................................................................................ 15
3.2.2 SAMPLING PROCEDURE........................................................................................ 15
V
3.3 RESEARCH INSTRUMENT ........................................................................................ 15
3.3.1 VALIDITY AND RELIABILITY OF THE INSTRUMENT..................................... 16
3.4 DATA GATHERING PROCEDURES ......................................................................... 16
3.5 DATA ANALYSIS ........................................................................................................ 17
3.6 ETHICAL CONSIDERATION ..................................................................................... 17
3.7 LIMITATIONS OF THE STUDY ................................................................................. 18
CHAPTER FOUR FINDINGS AND DISCUSSIONS ........................................................ 19
4.0 INTRODUCTION.......................................................................................................... 19
4.1 DEMOGRAPHIC CHARACTERISTICS OF THE RESPONDENTS ......................... 19
TABLE 4.1.1 GENDER ................................................................................................... 20
FIGURE 4.1.1 GENDER ................................................................................................. 20
TABLE 4.1.2 AGE DISTRIBUTION .............................................................................. 21
FIGURE 4.1.2 AGE OF THE RESPONDENTS ............................................................. 21
TABLE 4.1.3 MARITAL STATUS ................................................................................. 22
FIGURE 4.1.3 MARITAL STATUS ............................................................................... 22
TABLE 4.1.4 RESPONDENTS BY OCCUPATION ...................................................... 23
FIGURE 4.1.4 LEVEL OF OCCUPATION .................................................................... 23
TABLE 4.1.5 LEVEL OF EDUCATION ........................................................................ 24
FIGURE 4.1.5 LEVEL OF EDUCATION....................................................................... 24
4.2 DATA PRESENTATION AND ANALYSIS ............................................................... 25
TABLE: 4.2.1 LEVEL OF THE IMPACT OF MOBILE BANK ON ECONOMIC
DEVELOPMENT............................................................................................................. 25
4.3 MAJOR FINDINGS ....................................................................................................... 27
4.3. DISCUSSIONS ............................................................................................................. 28
CHAPTER FIVE CONCLUSION AND RECOMMENDATIONS.................................... 29
5.0 INTRODUCTION.......................................................................................................... 29
5.1 CONCLUSION .............................................................................................................. 29
5.3 AREA FOR FURTHER RESEARCH ........................................................................... 30
5.3 RECOMMENDATIONS ............................................................................................... 30

VI
List of Table
TABLE 4.1.1 GENDER ............................................................................................................ 20
TABLE 4.1.2 AGE DISTRIBUTION ........................................................................................... 21
TABLE 4.1.3 MARITAL STATUS .............................................................................................. 22
TABLE 4.1.4 RESPONDENTS BY OCCUPATION ........................................................................ 23
TABLE 4.1.5 LEVEL OF EDUCATION ....................................................................................... 24
TABLE: 4.2.1 LEVEL OF THE IMPACT OF MOBILE BANK ON ECONOMIC DEVELOPMENT ... 25

VII
LIST OF FIGURES
FIGURE 4.1.1 GENDER ....................................................................................... 20
FIGURE 4.1.2 AGE OF THE RESPONDENTS ........................................................... 21
FIGURE 4.1.3 MARITAL STATUS ........................................................................ 22
FIGURE 4.1.4 LEVEL OF OCCUPATION ................................................................ 23
FIGURE 4.1.5 LEVEL OF EDUCATION .................................................................. 24

LIST OF ABBREVIATIONS

AfDB African Development Bank

IBM International Business Machines

UNCTAD United Nations Conference on Trade and Development

FDI Financial Derivative Instrument

ATMs Automatic Teller Machines

ARB African Reserve Bank’s

ICTD Information and Communication Technologies and Development

M-PESO Mobile Revolution and the Promise of Mobile Savings

VIII
 ABSTRACT

The purpose of this research method has been adopted is to examine the extent of mobile
banking in which can be facilitate of economic transaction, to view the strength of
Somalia local currency in respect to mobile banking system and to explore the mobile
banking on economic development in Mogadishu-Somalia. A survey research method
has been adapted to mobile bank on economic development.
The data were collected through questionnaires filled by the respondents of
Telecommunication and Banks in Mogadishu-Somalia. the results of the questionnaire
were then analyzed with the aid of SPSS.
The result of this study indicates that is Mobile Bank is low affected in service companies
in Mogadishu Somalia. the study found the mobile bank has a low positive effect on
alleviation of poverty among both the man and women. Finally the study stated the major
challenges faced by mobile bank on economic development include lack of understanding
the meaning and concept of mobile bank by the clients not have adequate loan or equity
capital to increase loan able funds and insufficient support from government and also the
study found there is no adequate donor funding research recommends pay scale and
benefits of the service companies must be provide as an equitable manner to quit with the
organization, service companies must be practice incentive policies to absorb their
employee’s skills and efforts and they have to clarify their goals in order to enhance
cooperation among mobile bank.

IX
 CHAPTER ONE

INTRODUCTION

1.0 INTRODUCTION
This is the first chapter of the study and the researcher is focus on the following sections:
Background of the study, problem statement, research purpose, research objectives,
research Questions, significant of the study, scope of the study, the study operational
definitions and conceptual frame work.

1.1 BACKGROUND OF THE STUDY

In the world first mobile banking and payment initiatives were announced during 1999.

(The same year that Fundamo deployed their first prototype) the first major deployed was

made by a company called Pay box “largely supported financially by Deutchebank”. The

company was founded by two young German’s“Mathias Enteman and Eckert Ortwein”

and successfully deployed the solution in Germany, Austria, Sweden, Spain and UK At

about 2003 more than a Million of people were registered on Pay box (Jenkins, 2004).

In Africa The usage of mobile banking and in particular, payments by means of

mobile phones, has increased in recent years in South Africa, with consequent impacts

from a legal and regulatory point of view.( (AfDB, December 2010). Electronic banking,

peer to peer fund transfers, purchase from the Internet, and purchase of services/goods

from service providers and shops. Mobile payment solutions cover all main financial

payment methods; cash, direct debit, credit card, and payment. against service bill

(Lawack, 2013).In Kenya the local name of mobile banking is M-pesa, in which M stands

for mobile, While Pesa is Swahili for money. The system was developed and run by

Segesta from initial Development to the six million-customer mark. In addition, this

1
project was joint funded by UK government department for international development

and Vodafone’s Kenyan affiliate Safricom in 2003-2006 and commercially launched in

2007. (AfDB, December 2010). The pilot was first used to disburse loans from Faulu-a

Kenyan microfinance agency-to its clients and collect repayments. The service has

now been transitioned to be operationally run by IBM Global services on behalf Of

Vodafone (Kirui, Okello and Nyikal, 2012).

In Somalia, Due to having access and rapid growing of telecommunication, Hormuud

Telecom in Mugdisho, Golis Telecom in Bossaso and Telesom in Hargeisa have
introduced a mobile money (M-money thereafter) service in the first time in 2009, which
is known as Zaad or Sahal financial Service allowing customers using their mobile
phone to transfer money, to pay bills and to purchase goods and services. (Sayid, 2012).
Theoretically, this study will be guided the theory of technology advanced by Nalini

Govindaarajula in 2007. The theory suggests rapid changes in technology forces

organizations to do business in new ways in order to survive and be successful.

(NaliniGovindaarajulu.PHD. Student management depth, 2007). It adopted for this

because offering banking products through mobile phones is a new form of technology

that can reach remote areas at lower cost and the present time majority methods of

business transaction passed on electronic money-mobile Banking-, which seems that there

is need of using cash. Moreover, what caused to use mobile banking is its

comprehensive task which includes: depositing, with drawing, purchasing,

Remittance and saving money, as well as making bill payments. Mobile banking has

different definitions but all these definitions may provide nearly Similar meanings.

The following could be the most commonly used definitions of mobile Banking.

Mobile banking is a form of electronic money and refers to services that connect

2
 Consumers financially through mobile phones (lawack, 2013).

The terms m-banking, m-payments, m-transfers and m-finance refer collectively to a set

of applications that enable people to use their mobile telephones to manipulate their bank

Accounts, store value in an account linked to their handsets, transfer funds, m-banking

or even access credit or insurance products (Donner and Tellez, 2004). Accordingly

mobile banking is defined as working definition: Mobile banking is a form of electronic

money and refers to services that connect consumers financially through mobile phones.

In context of Somalia many studies might be performed related to mobile banking and

Economic development but this study examines the effect of mobile banking on

economic development in Mogadishu.

1.2 PROBLEM OF THESTATEMENT

In order to provide excellent medium of exchange ,people needs new medium of

exchange that has time saving , Acceptability, Security and Efficient (Cecchetti,

Schoenholtz an fackler,2011). People were using paper money which is associated to

many problems, some paper currencies may be loading problems, security problem, and

some paper money may be refused because of tear and long term using, and time

saving is very low and inefficient. Also the last years there were problems of using

Somalia shilling because of devaluation. This made it difficult Somali shilling to be

used and US Dollar became the medium of exchange of many business centers .People

need new financial services as medium of exchange, mobile banking facilitated the

solution of the above mentioned problems. People can pay bills, make purchase,

transfer Money to other deposed and withdraws money using their mobile phones any

time anywhere. Business people in the remote areas can directly transfer their money

3
 to their suppliers without Going to remittance companies (Lawack, 2013).

Therefore this study investigate the time saving, Acceptability, Security and

Efficient of mobile banking.

1.3 PURPOSE OF THE STUDY

This study, the researchers will describe the effects of mobile banking on Economic

development In Mogadishu and also we will investigate the affect mobile banking on

economic Development in Mogadishu.

1.4 RESEARCH OBJECTIVES

The main objectives of this study are:

1. To examine the extent of mobile banking in which can be facilitate of economic

transaction.
2. To explore the mobile banking on economic development in Mogadishu.
3. To view the strength of Somalia local currency in respect to mobile banking

system.

1.5 RESEARCH QUESTIONS

1. What is the extent of mobile banking in which can be facilitating of economic

transaction?

2. What is the impact of mobile banking on economic in Mogadishu?

3. What is the strength of Somalia local currency in respect to mobile banking system?

1.6 THE SCOPE OF THE STUDY

This research is limit to describe the effects of mobile banking on economic,

therefore this study is limited to economic development in Mogadishu.

The researcher using questionnaires in the Method of collecting data. This study will

clearly identifies role of mobile banking on economic transaction as a whole,

4
 particularly on Mogadishu markets. In addition, it will test how this new way of

banking will contribute the progress of trading, and its economic effects practically in the

monetary side. As well as, it tests degree of adaptation on this new way in Somalia

society, especially Mogadishu residents. In terms of time this study will limit from March

to April 30, 2015.

1.7 SIGNIFICANT OF THE STUDY

This study will useful to different persons of the population. Firstly, owners

Telecommunication companies can use the study to indicate and to know

themselves that they supplied very important services, also business owners can use this

study to educate themselves the role of mobile banking on economic

transactions. Secondly, this study will be useful to other customer who uses mobile

banking. Thirdly, this study can be used by mobile phone operators in order to Improve or

to expand their services in a way that can take part the economic development of the

country.

1.8 OPERATIONAL DEFINITIONS OF VARIABLES

Mobile Banking: Business that keeps money for individual people or companies,
exchanges Currencies, makes loans, offers other financial services and which
characterized by accessibility, efficiency, time saving and reliable security via mobile
device (Cecchetti, Schoenholtz, and fickler, 2011).
Economic development: is an organization engaged in trade of goods, services, or both

to consumers, While, transaction is an agreement communication or movement

carried out between buyer and seller to exchange asset for payment.

5
1.8.1 CONCEPTUAL FRAME WORK

s
Mobile banking Economic development

(I d d i bl ) (D d i bl )

• Mobile recharging • Customer care

• Commercial payment processing • Service quality

• Bill payment processing • Cash management

6
 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.0 INTRODUCTION

In this chapter, the researchers will discuss the literatures related to the impact of mobile
banking on economic development in Mogadishu, by containing fifth sections: the first
section is the prior studies, the second section is definition, advantages and disadvantages,
economic contribution and types of mobile banking services of mobile banking, the third
section is mobile banking and economic model, the fourth section is summary is, the fifth
section conclusion.

2.1CONCEPT MOBILE BANKING

To understand the difference between Electronic- and Mobile Commerce or between

Electronic and Mobile Business it is essential to understand the similarities and differences
between the terms “electronic” and “mobile”. The adjective “electronic”, used within the
specific contexts of
“Electronic. Business” or “Electronic Commerce”, signifies an “anytime access” to
business processes managed by computer-mediated networks Furthermore the access to
such networks is, in this case, stationary. The services are, therefore, not available
independent of the geographic location (Hohenberg and Rufera, 2004, p. 35).
The adjective “mobile”, used within the specific contexts of “Mobile Commerce” or
“Mobile Business”, signifies an “anytime and anywhere access” to business processes
managed by computer-mediated networks. The access takes place using mobile
communication networks, making the ailment of these services independent of the
geographic location of the user (Stanoevska and Slabeva, 2003, p. 2 and Hohenberg and
Rufera, 2004, p. 35).
Mobile Commerce is closely related to Electronic Commerce, since the services offered in
Electronic- as well as Mobile Commerce are handled electronically by computer-mediated
networks and are accessible through communication networks (Tiwari and Buse, 2007).
Mobile Business is often referred to as “M-Business” or “m Business”. In this study we

7
work with the full form “Mobile Business”. The UNCTAD defines Mobile Business in the
following terms: “Mobile Business involves business-related communication among
Individuals and companies where financial transactions do not necessarily occur.”
(UNCTAD, 2002, p. 89) Mobile banking is a form of electronic money and refers to
services that connect consumers financially through mobile phones (lawack, 2013). The
terms m-banking, payments, m-transfers and m-finance refer collectively to a set of
applications that enable people to use their mobile telephones to manipulate their bank
accounts, store value in an account linked to their handsets, transfer funds, m-banking or
even access credit or insurance products. (Donner and Tellez, 2004).
Mobile Banking is usually defined as carrying out banking business with the help of mobile
devices such as mobile phones or PDAs (Georgi/Pinkl, 2005, p. 57 and Luber, 2004, p. 19).
Mobile Banking refers to provision and availment of banking- and financial services with
the help of mobile telecommunication devices. The scope of offered services may include
facilities to conduct bank and stock market transactions, to administer accounts and to
access customized information (Tiwari and Buse, 2007).
According to Mobile Marketing association, Mobile banking through cell phone offers
many advantages for customers as well as banks. Some of them are as follows:
You make a transaction or pay bills anytime; it saves a lot of time, banking through cell
phone benefits the banks too. It cuts down on the cost of Tale- banking and is more
economical; Cell phone banking is cost effective. Various banks provide this facility at a
lower cost as Compared to banking by self, Mobile banking thorough cell phone is user
friendly. The interface is also very simple. You just need to follow the instructions to make
the transaction. It also saves, the record of any transactions made, Mobile banking through
cell phone is very advantageous, the banks as it serves as a guide in order to help the banks
improve their customer care services. Various banking services like account balance
enquiry, credit/debit alerts, pill payment alerts, transaction history, fund transfer facilities,
minimum balance alerts etc. can be accessed from your mobile., You can transfer money
instantly to another account in the same bank using mobile banking, Banks can also
promote and sell their products and services like credit cards, loans etc. to a specific group
of customers, Banking through mobile reduces the risk of fraud and

8
you will get an SMS whenever there is an activity in your account. this includes deposits,
cash withdrawals, funds transfer etc. you will get a notice as soon as any amount deducted
or deposited your account.
According to Tiwari and Buse (2007), Mobile banking has a number of disadvantages.
These include- Decreases circulations and the use of Somali shilling. Encourages indirectly
the use of US dollar even for small payments because it facilitates to provide small changes
that might be difficult in the case of using paper money vulnerable to be corrupted
(Morawczynski,2008), does not offer a secure environment.
According to Somali Business Review Magazine (October- December 2010) one of the
success measurements of any program is the extent to which it contributes to the informal
economy of Somalia. Economically this mode of payment system can be very helpful to the
informal economy of Somalia if it is not corrupted, because electronic payment systems are
vulnerable to be corrupted as it is a sword with two edges (Nor, 2010).
According to Nor (2010), Electronic payment systems in general and mobile banking in
particular facilitate economic transactions in different ways:-
 It facilitates business in the remote areas to directly transfer their money to their
suppliers
 It helps to collect receivables easily and
 It helps people to easily transfer money to their loved ones within Somalia
 Creating employment opportunities is one of the determinants of economic growth and
the availability of these opportunities are considered as a crucial factor for the development
of every country.
 It helps consumers to demand their tests and the success of mobile banking or mobile
money lies whether it creates more economic opportunities. Creating employment
opportunities is one of the determinants of economic growth and the availability of these
opportunities.
 It eliminates the problems associates with lack of small changes specially the US Dollar.
According to Research Journal of Information Technology in 2009, mobile banking can
offer service such as the following: Account information, Mini- statement and checking of
account history, Alerts on account activity or passing of set thresholds, Monitoring of term
deposits, Access to loan statements, Access to card statements, Mutual funds/equity
9
statement, Insurance policy management, Pension plan management, Payment and
transfers, Domestic and international fund transfers, Mobile recharging, Commercial
payment processing, Bill payment processing.

2.2 MOBILE BANKING ON ECONOMIC DEVOLOMENT

Over the past few decades, many developing countries, particularly in East Asia and Latin
America, have implemented special economic zones as a means of enhancing industrial
competitiveness, attracting FDI, developing and diversifying exports and piloting new
policies and approaches to industrial development (FIAS, 2008). special economic zones
can be traditionally defined as geographically demarcated areas within the national
boundaries of a country, where the rules of business are different — generally more liberal
— from those that prevail in the national territory (World Bank, 2012). Many Telecoms
will work through their local airtime resellers. These models differ primarily on the
question that who will establish the relationship (account opening, deposit taking, lending
etc.) to the end customer, the Bank or the Non- Bank/Telecommunication Company
(Kupferberg,2003). Examples range from use of Automatic Teller Machines (ATMs) to
internet banking or mobile phone banking to provide certain limited banking services to
banks customers. This model is additive in nature and may be seen as a modest extension of
conventional branch- based banking (Mobile marketing Association, 2009).
This means a part of agreement between bank and telecommunication companies to offer
financial solutions in a particular area. Bank A for example and Telecommunication B,
have agreed that subscribers in telecommunication B will be able to use their mobile
phones for person-to-person money transfers, bill payment, mobile airtime reload and retail
purchases, among other services (Jenkins, 2004).
2.2.1 Characteristics of a Developed Economy
A developed economy is the characterized by increase in capital resources, improvement in
efficiency of labor, better organization of production in all spheres, development of means
of transport and communication, growth of banks and other financial institutions,
urbanization and a rise in the level of living, improvement in the standards of education and
expectation of life, greater leisure and more recreation facilities and the widening of the
mental horizon of the people, and so on. In short, economic development must break the

10
poverty barrier or the vicious circle and bring into being a self-generating economy so that
economic growth becomes self-sustained. (Prof. Colin Clark).
The main characteristics of developed countries are as follows.
1. Significance of Industrial Sector.
2. High Rate of Capital Formation.
3. Use of High Production Techniques and Skills.
4. Low Growth of Population.

2.3 PRIOR STUDIES

According to Lawack ( 2013) , investigated of the legal and regulatory framework for
mobile payments in South Africa. His analysis also examined the significance of the South
African Reserve Bank’s (ARB) 2009 Position Paper on Electronic Money, the reasons for
the change in regulatory stance and the effect that this may have on financial inclusion
(access to the payment System) for non-bank mobile payment providers. Continues his
research in this area is needed to Assess the impact of the change in regulatory stance on
access to financial services for the poor, as a golden opportunity may be missed to increase
financial inclusion to the payment system. If it is found that there is over-regulation of
mobile payments in South Africa. If this is not done properly, the clear benefits of mobile
money as shown in Kenya may not be realized in South Africa. And this study also stated
that the regulatory framework in South Africa is not entirely Conducive to greater financial
inclusion and argues for a better balance between the regulation of risk and access to the
payment system through an enhanced implementation of a risk-based Approach. However
the prior study that made by Donner and Tellez (2004), stated that the various people in the
world use the mobile phone to provide financial services to those without access to
traditional banks. Yet relatively little scholarly research explored the use of these m-
banking/payments systems. This paper filled to this gap in the research literature,
emphasized the need for Research focusing on the context(s) of m-banking/m-payments
use. Presented illustrative data from exploratory work with small enterprises in urban India,
it argue that contextual research is a critical input to effective “adoption” or “impact”
research. Further, it suggested that the challenges of linking studies of use to those of

11
adoption and impact reflect established dynamics within the Information and
Communication Technologies and Development (ICTD) research community.
In context of Somalia there is single study that made by Nor (2010) that investigated impact
of mobile banking on economy of Somalia, he measured the success of any program is the
extent to which it contributes to the informal economy of Somalia. Economically this mode
of payment system can very helpful to the informal economy of Somalia if it is not
corrupted; because electronic payment systems are vulnerable to be corrupted as it is a
sword with two edges. The mobile money created more economic opportunities. Creating
employment opportunities is one of the determents of economic growth and the availability
of these opportunities are considered as crucial factor for the development of every country.
Mobile money does not increase the circulation of Somali shilling and it indirectly
contributes the dollarization of Somali economy.

2.4 SUMMARY

This chapter is the review from the literature; there are a lot of studies that discussed about
mobile banking, such as the study that made by Lawack discussed of the legal and
regulatory framework for mobile payments in South Africa, and this study also stated that
the regulatory framework in South Africa is not entirely conducive to greater financial
inclusion and argues for better balance between the regulation of risk and access to the
payment system through an enhanced implementation of a risk-based approach. However
the prior study that made by
Donner and Tellez stated that the various people in the world use the mobile phone to
provide financial services to those without access to traditional banks but In context of
Somalia there is lone study that made by Nor that consider impact of mobile banking on
economy of Somalia, he measured the success of any program is the extent to which it
contributes to the informal economy of Somalia.
Mobile banking is a form of electronic money and refers to services that connect consumers
financially through mobile phones and advantages of mobile banking you make transaction
or pay bills anytime; it saves a lot of time, banking through cell phone benefits the banks
too. It cuts down on the cost of Tele- banking and is more economical; Cell phone banking
is cost effective. Various banks provide this facility at a lower cost as compared to banking
12
by self, Mobile banking thorough cell phone is user friendly. The interface is also very
simple. You just need to follow the instructions to make the transaction. It also saves the
record of any transactions made.
The mobile banking has offered many services that include It facilitates business in the
remote areas to directly transfer their money to their suppliers, It helps to collect
receivables easily, It helps people to easily transfer money to their loved ones within
Somalia, Monitoring of term deposits, Access to loan statements, Access to card
statements, Mutual funds/equity statement, Insurance policy management, Pension plan
management, Payment and transfers, Domestic and international fund transfers. Business
model is a model of doing business by which a company can generate revenue to sustain
itself. A wide spectrum of Mobile/branchless banking models is evolving.
However, no matter what business model, if mobile banking is being used to attract low-
income populations in often rural locations, the business model will depend on banking
agents, i.e. retail or postal outlets that process financial transactions on behalf telecoms or
banks. The banking agent is an important part of the mobile banking business model since
customer care, service quality, and cash management will depend on them. Many Telecoms
will work through their local airtime resellers. These models differ primarily on the
question that who will establish the relations hip (account opening, deposit taking, lending
etc.) Tithe end customer, the Bank or the Non- Bank/Telecommunication Company

2.5 CONCLUSION

According to Lawack investigated the legal and regulatory framework for mobile payments
in South Africa. But the study that made by Donner and Tellez, talks about Mobile banking
and economic development: Linking adoption, impact and use, however the study made by
Demombynes and Thereby focused on Kenya’s Mobile Revolution and the Promise of
Mobile Savings. In context of Somalia there is single study that made by Nor. investigated
impact of mobile banking on economy of Somalia, there for this study is tends to observe
the impact of mobile banking and economic development in Mogadishu. This study will fill
the gap in the literature.

13
 CHAPTER THREE

METHODOLOGY

3.0 INTRODUCTION

In this chapter the research methodology discussed research design ,research population

,sample size sampling procedure , research instruments , data gathering procedure,

reliability and validity of the instrument, data analysis , ethical considerations and

limitation of the study followed by summary & conclusion

3.1 RESEARCH DESIGN

This study employed survey research approach surveys are information-collecting method

use to describe, compare or explain individual and social knowledge, feelings, values,

preferences and behavior (Fink, 2009).

The study will be conducted through descriptive study; the purpose of descriptive research

is to describe an accurate profile of persons, events or situations.. However, this study will

be used quantitative approach; Quantitative is any data collection technique (such as a

questionnaire) or data analysis procedure (such as graphs or statistics) that generates or uses

numerical data (Saunders et al, 2009).

3.2 RESEARCH POPULATION

The target population in this research covers all people using mobile banking in Mogadishu

city. The researchers categorized as business persons, telecommunication personnel, banks

personnel, Teachers, and others who are familiar the Mobile banking. Since the objective of

the study is to examine the impact of mobile banking on economic development in

Mogadishu. So that the researchers will focus on business persons.

14
3.2.1 Sample Size

Sampling is a process of selecting study sample; the targeted sample size will be 30

businesspersons in Mogadishu .this sample size is support by Demombynes and Thereby

(2012)that study used quantitative research design and conducted 30 observations ,that

study collected 30 observations by using the snowballing method to boost the sample of M-

PESO users. That focused on Kenya’s Mobile Revolution and the Promise of Mobile

Savings.

3.2.2 Sampling Procedure

This study will employ purposive sampling technique which is a part of non-probability

sampling. The non-probability sampling is that sampling method which does not give any

basis for estimating the probability that each point in the population has of being integrated

in the sample. non-probability sampling is also known as deliberate sampling, purposive

sampling and judgment sampling (Kothari, 2004). According to Neuman (2005), defines a

purposive sampling technique as that enables you to use your judgment to select cases that

will best enable you to answer your research question(s) and to meet your objectives as

cited in (Saunders, Lewis and Thornhill, 2009). Considering the availability and the

reliability of the data to be collected, researchers prefer to use purposive sampling

technique so that an informative data can be collected to answer the research questions.

3.3 RESEARCH INSTRUMENT

This study will use questionnaire. The questionnaire will be designed to enable the study to

get relevant information to the research topic. Questionnaire is a collection of items to

which are pendent is expected to react in written. According to Kothari (2004), that the

Questionnaire has many advantages include: There is low cost even when the universe is
15
large and is widely spread geographically, It is free from the bias of the interviewer;

answers are in respondents ‘own words, Respondents have adequate time to give well

thought out answers and Large samples can be made use of and thus the results can be

made more dependable and Reliable.

The questionnaires will be developed based on the literature. In the developing process,

researchers will follow five steps of questionnaire design, first to design the questionnaire

carefully, second to make the questionnaire pre-test and pilot test stage, third to be the

administrative stage good, fourth how the variable will be key in, finally analyzing the

report. The researchers also will make a consult with experts in this area, where then the

questionnaire will be tested with a small sample, to enhance its reliability.

3.3.1 Validity and reliability of the instrument

The most important issue in the research is to consider the validity and reliability of the

instrument used to collect the data. Easter by-smith et al, (2008) as cited in Saunders et al,

(2009). Reliability: refers to extent to which your data collection techniques or analysis

procedures will yield consistent. The reliability of the study means that the research will be

reliable if the research questioner distributed to some respondents out of the research area,

and agreed to the results of the respondents at least 75% so the research will be reliable.

Validity of the research is experimented where the questions in the research are submitted

to an expert, and then ordered how it relates the research objective.

3.4 DATA GATHERING PROCEDURES

This study will compose into questioners Based on the research objectives and questions,

researchers will distributes to the target population by self-administration. In addition,

observation that researcher conducted through markets.

16
3.5 DATA ANALYSIS

Quantitative data analyses will be conducted this study, because the research instrument of

this study is questioner, descriptive statistical will conduct in this study, because it can

utilize our objectives, descriptive analysis: is used of measure central tendencies such as

mean, median and mode and measures of description such as range, quartile deviation,

standard deviation and variance to describe a group of subject (Oso and Onen,

2008).Statistical package for social science (SPSS) version 17.0 will be used to analyze the

data collection of this study, because it is not easy to analyze the data collected in a study

manually without using any statistical packages

1= Strong agree, 2= Agree, 3= Neutral, 4= Disagree, 5= Strong disagree

The following table presents the mean ranges and their interpretation.

3.5.1 TABLE DATA ANALYSIS

Mean range Response mode Interpretation

3.60-4.25 Strongly agree Excellent
2.95-3.60 Agree Very good
2.30-2.95 Moderate Good
1.65-2.30 Disagree Poor
1.00-1.65 Strongly disagree Very Poor

3.6 ETHICAL CONSIDERATION

In this study the researchers will consider the ethical issues throughout the research project,

and will keep the openness, privacy and confidentiality of the respondent, to keep the

ethical issues data given by the respondent will be used only for academic purpose, this

research was fully conducted ethically and all copyright will be observed and where

17
permission is required to reproduce materials will sought. Because of the confidentiality,

privacy and informed consent may be ethical problem of the study (Oso and Onen, 2008)

and (Orb et al, 2000). In this study the researcher team will be committed to keep the

privacy of the participants through undisclosed their information. In addition the team will

request the academic department a certificate of confidentiality so as to get confidentiality

and the researcher will provide the participants with information about the purpose of the

research and the expected duration of participation and the procedure to be fallowed.

3.7 LIMITATIONS OF THE STUDY

This study has many limitations which may affect researchers across on its research

procedure Such limitations include: the geographical scope, the study will be limited only

in Mogadishu; the study will be limited to only a sample of 30 respondents of all business

persons living in Mogadishu and as well as limitation of the population, the Potential

researchers are expected to Cover large samples in the future research. In addition the study

also suffers the use of questionnaire. Because, the questionnaire have some limitations such

as Poor response rate, Incomplete or poorly completed answers, Limit and shape nature of

answers and cannot check truth of answers (Densccchcombe, 2007).

18
 CHAPTER FOUR

FINDINGS AND DISCUSSIONS

4.0 INTRODUCTION

This chapter presents detailed description of findings and discussions, the study consist of

three sections first section demographic data, second section data representations and

analysis and third section major findings and discussion of the study. To achieve those

declared objectives questionnaire employed in this study.

4.1 DEMOGRAPHIC CHARACTERISTICS OF THE RESPONDENTS

This part presents the background information of the respondents who participated in this

Study; the purpose of this background information is to find out the characteristics of the

respondents. Furthermore, the respondents have also given the promise that all the data they

provided is only used for academic purpose research and the identities of the respondents

will be confidential. In total, (30) respondents filled in the questionnaire selected from the

two Banks in Mogadishu Somalia. The shape of the questionnaire in the demographic

section is looked upon in terms of age, gender, marital status, occupation and level of

education.

19
Tables 4.1: Respondents according to their background characteristics

Table 4.1.1 Gender

Gender
Cumulative
Frequency Percent Valid Percent Percent
Valid Male 18 60.0 60.0 60.0
Female 12 40.0 40.0 100.0
Total 30 100.0 100.0
Source: Survey Data 2015

Figure 4.1.1 Gender

40.0%
60.0%

4.1.1Respondents by gender

Based on the gathered questionnaires, of the respondent’s male were 60% and respondents
female were 40%, there was difference of both the male and female since the margin
between the two sexes were not big.
Table 4.1.2 Age distribution

Age
Cumulative
Frequency Percent Valid Percent Percent
Valid 20-25 12 40.0 40.0 40.0
26-30 9 30.0 30.0 70.0
31-40 7 23.3 23.3 93.3
More than 40 2 6.7 6.7 100.0
Total 30 100.0 100.0
Source: Survey Data 2015

Figure 4.1.2 age of the respondents

6.7%

23.3%

4.1.2 Respondents by Age

Ages of the respondents, majority of them were in between the ages of 25-35 years were 40
%, 26-30 were 30%, 31-40 were 23.3% and more than 40 were 6.7%. Thus, this result
indicates that the majority of the respondents were aged 25-35 years.
Table 4.1.3 marital status

Marital Status
Cumulative
Frequency Percent Valid Percent Percent
Valid Single 8 26.7 26.7 26.7
Marriage 19 63.3 63.3 90.0
Divorced 3 10.0 10.0 100.0
Total 30 100.0 100.0
Source: Survey Data 2015

Figure 4.1.3 Marital status

63.3%

26.7%

10.0%

4.1.3
Respon
dents by marital status
Respondents who are Single were 26.7%, Married respondents were 63.3%, while by the
Divorced were 10%. So that, most respondents who are working Bank firms were married.
Table 4.1.4 Respondents by Occupation

Occupation

Cumulative
Frequency Percent Valid Percent Percent
Valid Business 10 33.3 33.3 33.3
Telecommunications 6 20.0 20.0 53.3
Teachers 7 23.3 23.3 76.7
Bank 2 6.7 6.7 83.3
Others 5 16.7 16.7 100.0
Total 30 100.0 100.0
Source: Survey Data 2015

Figure 4.1.4 level of Occupation

33.3%

23.3%
20.0%
16.7%

6.7%
4.1.4 Respondents by Occupation

Respondents who are Business were 33.3%, Telecommunications were 20%, Teachers
were 23.3%, Banks were 6.7% and others were 16.7%, thus this result indicates that the
majority of the respondents were Business.

Table 4.1.5 level of education

Educational Level
Cumulative
Frequency Percent Valid Percent Percent
Valid Secondary 3 10.0 10.0 10.0
Bachelor 19 63.3 63.3 73.3
Master 7 23.3 23.3 96.7
Others 1 3.3 3.3 100.0
Total 30 100.0 100.0
Source: Survey Data 2015

Figure 4.1.5 level of education

3.3%

10.0%

23.3%

63.3%
 4.1.5 Respondents by educational level
From the above table respondents were Secondary 10%, Bachelor were 63.3%, Master
were 23.3% and others were 3.3%, So that the most respondents were Bachelor.

4.2 DATA PRESENTATION AND ANALYSIS

The independent variable in this study was the level of The Impact of mobile Bank on
Economic Development for Which the Researcher wanted to determine its level. Level of
The Impact of mobile Bank on Economic Development was operationalized using 10
questions in the questionnaire, Each of these questions was based on the five likert Scale,
where 1- Strongly Agree 2- Agree 3-Average importance Neutral 4- Disagree , 5- Strongly
Disagree, respondents were asked to rate the Level of The Impact of mobile Bank on
Economic Development by indicating the extent to which they agree or disagree with Each
question, their responses were analyzed using SPSS and summarized using means as in

TABLE: 4.2.1 LEVEL OF The Impact of mobile Bank on Economic Development

Descriptive Statistics
Mean Interpretation Rank
Mobile banking reduces the risk of fraud in 1
2.40 Good
the business
Mobile banking helps people to provide 2
small exchanges that might be difficult in 2.20 Poor
case of paper money
The use of mobile banking increases 3
2.00 Poor
customer spending (personal consumption)
Mobile banking increases volume of trade 4
by increasing sales per day because mobile 1.90 Poor
banking increases customer spending
The mobile banking same times caused to 5
1.87 Poor
lost your money

25
 The introduction of mobile banking, 6
remittance companies lost most of their 1.83 Poor
customers

Mobile banking allows customers to use 7

their mobile devices for money transfer,
1.73 Poor
purchases, deposits, and withdrawals
from their account

Mobile banking facilitates business in 8

the remote areas to directly transfer 1.47 Very Poor
their money to their suppliers

It is very simple and too fast to transfer 9

money using mobile banking than 1.43 Very Poor
remittance companies

Mobile banking helps to the people to 10

pay their bills such as electricity / water 1.23 Very Poor
and other expenses

Grand Total 1.81 Poor

Source: Survey Data 2015

Mean range Response mode Interpretation

3.60-4.25 strongly agree Excellent

2.95-3.60 Agree Very good
2.30-2.95 Moderate Good
1.65-2.30 Disagree Poor
1.00-1.65 Strongly disagree Very Poor
26
 Results in table indicate that the level of The Impact of mobile Bank on Economic
Development is generally Poor and this is indicated by the total average of 1.81, the highest
rated aspect of Mobile banking reduces the risk of fraud in the business 2.40 and this
followed the Mobile banking helps people to provide small exchanges that might be
difficult in case of paper money 2.20, The use of mobile banking increases customer
spending or personal consumption 2.00, Mobile banking increases volume of trade by
increasing sales per day because mobile banking increases customer spending 1.90, The
mobile banking same times caused to lost your money 1.87, The introduction of mobile
banking, remittance companies lost most of their customers 1.83, Mobile banking allows
customers to use their mobile devices for money transfer, purchases, deposits, and
withdrawals from their account 1.73, Mobile banking facilitates business in the remote
areas to directly transfer their money to their suppliers 1.47, It is very simple and too fast
to transfer money using mobile banking than remittance companies 1.43, and the lowest
rated aspect on the level Mobile banking helps to the people to pay their bills such as
electricity / water and other expenses 1.23.

4.3 MAJOR FINDINGS

In this part of the project it discussed the research results and findings derived from
questionnaire of these two banks in Mogadishu Somalia. one objective has this study; the
objective was to analyze the difference between the impact of mobile bank on economic
Development in Banks in Mogadishu Somalia. the most respondents were significantly
agreed that there is low affected by society the impact of mobile bank on economic
Development and the findings also clarified that the banks in Mogadishu Somali they don’t
provide pay scale on equitable manner and also the findings were revealed that almost
banks in Mogadishu somalia they don’t have well defined organizational goals. Finally all
tasks are not associated with incentives.

27
4.3. DISCUSSIONS

The purpose of this study was to demonstrate perceived the impact of mobile bank on
Economic Development in Service companies in Mogadishu, Somalia. One objectives
have this study the objective was to analyze the difference between the impact of mobile
bank on Economic Development in Service companies in Mogadishu Somalia. The result
of this study indicates that is Mobile Bank is low affected in Service companies in
Mogadishu Somalia. In this study the researchers will conduct descriptive research Studies.
Descriptive analyzes research design was used for this study where the caregivers’
purposive sampling and judgment sampling (Kothari, 2004). According to Neuman (2005),
defines a purposive sampling technique as that enables you to use your judgment to select
cases that will best enable you to answer your research question(s) and to meet your
objectives as cited in (Saunders, Lewis and Thorn hill, 2009). Considering the availability
and the reliability of the data to be collected The short coming of this type of design was
that results obtained from this kind of analysis do not allow for strong findings to be made
concerning a cause and effect difference between variables which indicated that there is
low the impact of mobile bank on Economic Development.

28
 CHAPTER FIVE

CONCLUSION AND RECOMMENDATIONS

5.0 Introduction

This chapter has covered three sections, the first section presented Conclusion, the second

section area for further research and the last section ends discussed recommendations.

5.1 Conclusion

The objectives of this study were to examine the role of The Impact Mobile Bank on
economic Development in Mogadishu and examine the challenges facing Mobile bank
consistent with the findings, the result revealed substantial evidence of the Impact Mobile
Bank in socio economic environments and play vital role on economic development and
also the study was discussed that the goal of mobile bank are first to deliver expanded
dependable and timely financial services to the economically active reduced second ,
create employment opportunities lastly involve in socio economic development . The study
found the mobile bank has a low positive effect on alleviation of poverty among both the
man and women. Finally the study stated the major challenges faced by mobile bank on
economic development include lack of understanding the meaning and concept of mobile
bank by the clients not have adequate loan or equity capital to increase loan able funds and
insufficient support from government and also the study found there is no adequate donor
funding .

29
5.3 AREA FOR FURTHER RESEARCH

 The relationship between incentive Mobile Bank on Economic Development.

 Consequences on inequitable e-mobile `
 To find out other e-bank except: mobile bank which are low affected on Economic
Development in some service companies in Mogadishu Somalia.

5.3 RECOMMENDATIONS

After data are collected, discussed and concluded, the researcher of this study suggest to
the small manufacturing companies in Mogadishu Somalia in order to develop their
organizations.

1. pay scale and benefits of the service companies must be provide as an equitable
manner to quit with the organization if these things are practiced it’s so easy
organization to success it’s long term planning.
2. The researcher recommended service companies must be practice incentive policies
to absorb their employee’s skills and efforts.
3. The researcher recommended service companies they have to clarify their goals in
order to enhance cooperation among mobile bank.

30
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Cecchetti, S. G., Schoenholtz, K. L., &fackler, J. (2011). Money, Banking, and

FinancialMarkets (3rd edition ed.). New York: The McGraw-Hill.Donner, J., & Tellez, C.

(2004). Mobile banking and economic development: Linking adoption,impact, and use.

Asian Journal of Communication, 18 (4), 318-322.Kirui, O. k., Okello, J. J., &Nyikal, R. A.

(2012). Impact of mobile phone-based money transferservices in agriculture: evidence from

Kenya. the International Association ofAgricultural Economists (IAAE) Triennial

Conference. Foz do Iguaçu, Brazil,.Lawack, V. A. (2013). Mobile money, financial

inclusion and financial integrity: the southafrican case. washington journal of low,

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Hohenberg, H. E. / Rufera, S. (2004): Das Mobiltelefon ALS Geldbörse der Zukunft –

Chancen

undPotentiale des Mobile Payment (M-Payment), in: der markt: Zeitschriftfür

Absatzwirtschaft und Marketing, Wien, 43(168), 2004/1, pp. 33-40.

Georgi, F. / Pinkl, J. (2005): Mobile Banking in Deutschland – Der zweiteAnlauf, in: Die

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Berlin, Issue 3/2005, pp. 57-61, online available: http://www.diebank.

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Jenkins, G. (2004): GSM White Paper: Brilliant Past, Bright Future, online available:

http://www.gsmworld.com/GSM%20White%20Paper.pdf, 22.02.2005.

Kupferberg, M. (2003), Der Personal Broker – Banking goes Mobile, Innovation In E-

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Luber, A. (2004): Kundennutzen und Vertriebsimplikationen mobile

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Stanoevska-Slabeva, K. (2003): Towards a Reference Model for M-Commerce

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10.12.2004.

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Tiwari, R., &Buse, S. (2007). The Mobile Commerce Prospects:. Hamburg University

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Selltiz, C. (1962). Research Methods in Social Sciences, pp. 50.

Demombynes, G., &Thegeya, A. (2012). Kenya’s Mobile Revolution and the Promise of

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Denscombe, M. (2007). The Good Research Guide (3rd ed.). Maidenhead, Berkshire,

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Kothari, C. R. (2004). Research methodology (Second Edition ed.). New Delhi: New Age

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Oso, W. Y., &Onen, D. (2008).A GenerealGuid to Writing Resaerch Proposal and Report.

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33
 APPENDICES
APPENDIX A: BUDGET ACTUAL COST

The following budget table is the estimation made by the researcher to determine my costs of
activities.

No. ITEM AMOUNT IN DOLLAR

1 Equipment $10
2 Stationery $15
3 Printer facility $81
4 Internet facility $60
5 Telephone expenses $21
6 Transportation expenses $32.5
7 Other costs $31
Total Budget cost $250.5

34
 APPENDIX B: TIME FRAME

In order to complete the research activities on time, the researcher will point the
following schedule, which stated on the following table.

No. ACTIVITIES DATE

1 Searching articles 10 February 2015
2 Reading articles 20 February 2015
3 Selecting topic and start building problem statement 6 March2015
4 Starting proposal 10 March 2015
5 Draft the proposal 15 March 2015
6 Reviewing the proposal 20 March 2015
7 Completing the proposal 24 March 2015
8 Submitting the proposal to the supervisor 26 March 2015
9 Developing the questionnaire 11 April 2015
10 Data collection 17 April 2015
11 Data analyses/ Findings and conclusion 22 April 2015
12 Print final draft 25 April 2015
13 Complete and Submit to the thesis 30 April 2015

35
 QUESTIONNAIRE

Dear Sir/ Madam,

Greetings!

I am a bachelor Student in Business Administration at Horseed International University as

Part of the requirements for the award is a project report. My study is entitled The Impact
Mobile Bank on Development in Mogadishu. May I request you to participate in this study
by answering all questions; ny data you will provide shall be used for academic purposes
only and no information of such kind shall not be disclosed to others

Thank you very much in advance.

Yours faithfully,

THANKING YOU FOR YOUR COOPERATION.

2-Gender:

1) Male 2) Female

1-Age:

1) 20-25 2) 26-30 3) 31-40 4) More than 40

3-Marital status:

1) Single 2) Married 3) Divorced

4-Occubation:

1) Business persons 2) Telecommunication personnel 3) Teachers

4) Bank personnel 5) others

36
5-Educational level:

1) Secondary level 2) Bachelor

3) Master 4) Others

SECTION TWO: IMPACT OF MOBILE BANKING ECONOMIC DEVEPLOMEN

1- Strongly Agree 2- Agree 3- Neutral 4- Disagree 5- Strongly Disagree

NO OBJECTIVE ONE 1 2 3 4 5

1. Mobile banking helped people to pay payrolls, bills such as

electricity bills

2. Mobile banking facilitates business in the remote areas to directly

transfer their money to their suppliers
3. It is very simple and too fast to transfer money using mobile
banking than remittance companies
4. The use of mobile banking increases customer spending (personal
consumption)
5. The introduction of mobile banking, remittance companies lost most
of their customers
6. The introduction of mobile banking, remittance companies lost most
of their customers
7. Mobile banking reduces the risk of fraud in the business

8. Mobile banking increases volume of trade by increasing sales per day

because mobile banking increases customer spending
9. Mobile banking allows customers to use their mobile devices for
money transfer, purchases, deposits, and withdrawals from their
account
10 Mobile banking helps people to provide small exchanges that might
be difficult in case of paper money

37