Mobile Phone Technology, Agency Banking Services, Online Banking Services and Financial Inclusion of Small and Medium Enterprises in Kenya

The study sought to examine the effect of mobile phone technology, agency banking services and online banking services on financial inclusion of Small and Medium Enterprises in Kenya. This study originates from the Doctoral dissertation of the first author where the co-authors served as supervisors. Technology Acceptance Model and Asymmetric Information Theory were adopted. The study adopted explanatory research design. The top 100 Small Medium Enterprises in Kenya constitute the target population and the sample size was 200 based on purposive sampling technique and simple random sampling where two respondents were picked from each Small Medium Enterprises of interest. Multiple regression technique was used for the analysis of data. A response rate of 81.5 percent was achieved. Primary data was used which was collected using a questionnaire. The study used multiple regression analysis. It was established that mobile phone technology and agency banking services had insignificant effect on financial inclusion of small and medium enterprises in Kenya. The study found that online banking services had significant effect on financial inclusion of small and medium enterprises in Kenya. The study recommends that business managers should capitalize on the underlying benefits of online banking by fully utilizing and exploring its various services. Online banking services should be supported and enhanced by the government in view of its importance in fostering financial service accessibility which in turn improves financial inclusion. Further studies can evaluate the effect of mobile phone technology and agency banking services on financial inclusion of small and medium enterprises in Kenya based on a different methodology.