An evaluation of consumer skepticism towards mobile banking products: Case study of Airtel money

Abstract

The study was conducted to evaluate the consumer skepticism towards the uptake and use of mobile banking products in Airtel money. The study had three objectives namely to establish consumers’ attitudes towards using Airtel Money in Uganda, to evaluate the role of consumer skepticism in influencing usage of mobile banking products and to design appropriate strategies to improve usage of Airtel mobile products in Uganda. The study used a cross-sectional survey design whereby, data was elicited regarding wide range of variables at the same point in time rather than attempting to investigate the facts over time. The survey adopted the mixed research approach by using both qualitative and quantitative methods. A sample size of 384 respondents selected using a random sampling technique was used to determine the influence of skepticism on the uptake of Airtel Money services. From the findings, the results prove that skepticism plays a role in determining usage of Airtel Money but also highlight other intervening factors that exacerbate the lack of trust among some users. These factors include; past changes in brand names, small agent network, downtime and security concerns. For telecoms like Airtel to promote their mobile money services and challenge MTN’s dominant position in the mobile money market, it is recommended that; they consider cost reduction on transactions especially the lower bands, Improve service uptime, conduct cost effective Sales Promotions that concentrate on below the line initiatives, Emphasize customer care throughout their agent network, improve on the communication network in their areas and extend mobile money nearer to the people by enlisting more agents as well as ensuring that the agents are motivated and well financed in terms of float.