Traditional Banks Collapse As Mobile Banking Shines
14 December 2015
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Conventional  Banks have been hit hard  by the advent of  mobile banking whose transactions has increased from three percent to 16 percent in the last three years.
Report by staff reporter/state media
Results released on Monday by a research called Making Accessible Possible Diagnostic revealed that the migration to mobile banking continues to be caused by the banking sector’s rigidity.
Factors such as poor customer care and long queues in the banks have also been cited as reasons for the customer migration from traditional banks to mobile banking.
The survey, says banks’ contribution to financial inclusion has declined over the years with payments and mobile money platforms dominating financial inclusion landscape.
The survey also reveals the financial services sector has been weighed down by monthly, deposit and withdrawal charges being implemented.
Most of the accounts are dormant, hence rendering the financial services sector less superior to the mobile money transactions.
Depositors have lost confidence in the financial services sector for the past 10 years which has seen a decline in deposits while lending rates have remained very high.
The survey is comprehensive market assessment of retail financial services with the major purpose being to assist government to identify key priorities and opportunities to extend access to financial services.
With the increase in mobile money transfer, there has been growth in cross-border retail money flows which is fundamental for household survival, hence the increase in informal financial services.