The Role of Mobile Banking in Microfinance Institutions (An Study of the Impact of Mobile Banking on Microfinance Institutions)
Author(s)
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Abstract
Microfinance Industry in Sindh, Pakistan, has been evolving for past ten years due to the advent of new Mobile and Telecommunication solutions . Mobile Banking is an innovative solution to the modern banking aspects of the Microfinance Industry. This research aims at the impact of the Mobile Banking on the Microfinance Institutions by assessing the essential factors effecting the sustainability of Mobile Banking in Microfinance Industry. This research work included the input of the work force placed in the Microfinance Institutions, who contributed to generate an output, which depicted the impact of Mobile Banking in Microfinance Institutions. The results shown that, there is a potential and prospects of sustainability of Mobile Banking in Microfinance Industry. Based on the previous work done in the area of Mobile Banking and Microfinance, it was assumed that, there is still lack of technological solutions to the modern Microfinance banking. Positive results of the impact of Mobile Banking on Microfinance Institutions shows that, there is strong capacity to adapt newer technological solutions by the Microfinance Industry. Four Microfinance Banks having branches in Hyderabad and Karachi were chosen to gather the data for purpose of quantitative analysis. Microfinance Industry is adapting various technological solutions aiming to improve financial inclusion in Sindh, Pakistan. This research aimed at the perspective of Microfinance Institutions using Mobile Technologies to improve financial inclusion by increasing its efficiency and outreach among unbanked population of Sindh, Pakistan.
Keywords
Microfinance, Fintech, Innovation, Mobile Banking, Financial Inclusion
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