AN ASSESSMENT OF THE EFFECTIVENESS OF MOBILE MONEY EDUCATION PROGRAMS ON CUSTOMER PERCEPTION AND BEHAVIOR IN CAMEROON

CHAPTER ONE

INTRODUCTION

Background of the Study

Making wise financial decisions and investing in a better life require a high level of financial literacy. In addition to managing external uncertainties, it assists people in efficiently managing their resources for daily living, education, retirement, and other significant elements of life (). People's incapacity to make wise financial judgements aggravates the problem during periods of frequent pandemics, wars, and financial crises. However, there has been a notable surge in the utilisation of mobile applications for education across many settings, such as formal education, home-schooling, professional settings, and schools. Nearly every industry has been impacted by the rise of mobile learning, including finance, where the number of mobile apps providing financial education is rising quickly (). Some of the main forces pushing individuals towards financial digitization are the rise of fintech, internet banking, and digital finance. This has an impact on financial education by changing societal norms to favour online financial education. Furthermore, since acquiring financial education is a lifetime process, younger people are the target audience for most educational initiatives (). Previous studies on the online teaching of mobile money services and financial concepts to younger generations have mostly concentrated on game-based learning, ignoring the exploration of alternative digital approaches such mobile app platforms (). The adoption and utilisation of mobile money have been unevenly distributed throughout the developing world. However, the number of mobile phone users in  Cameroon who hold a mobile money account is currently low, there is a significant disparity between the number of registered mobile money accounts and the number of active mobile money accounts in Cameroon in 2017. This suggests a high level of inactivity and limited utilisation. According to Arun and Kamath (2018), the mere adoption of mobile money does not guarantee its usage and effectiveness, as not all individuals who possess a payment product utilize it for receiving funds. Hence, it is necessary to actively pursue usage in order to demonstrate the advantages it brings. Furthermore, the study specifically focused on the recently established mobile money service called mKesh. They conducted a field experiment where they arranged community gatherings to spread knowledge about mKesh, and handed out pamphlets on mKesh. The researchers discovered that the availability of mKesh led to the uptake of mobile money services, however the rate of adoption declined over time. Specifically, the adoption of mKesh resulted in an increase in remittances received and consumption, as well as a decrease in vulnerability to hunger. However, it also led to a reduction in agricultural investments. Additionally, there are two reasons regarding the limited utilisation of financial services. Initially, the provision of financial services is excessively costly (Beck et al. 2019), particularly in rural regions and for individuals with low incomes. Our main concern is the lack of financial literacy, which can be attributed to a limited availability of information or users' incapacity to comprehend its use. In order to utilise a mobile money platform on their own, users must possess technical knowledge on how to use mobile money applications, as well as a basic understanding of financial concepts, due to the wide range of financial goods available through mobile money services. Furthermore, a multitude of mobile money kiosks, which facilitate the receipt and transmission of mobile money, are extensively distributed, even in remote regions of developing nations. Nevertheless, the availability of official mobile communications shops, where consumers can seek assistance or obtain answers to their queries, is restricted to urban regions and is not conveniently accessible to the majority of consumers. Consumers probably may not have sufficient access to the information required to efficiently utilise mobile money. Research indicates that the considerable obstacle of limited knowledge about finances among individuals seeking financial services can be surmounted by implementing carefully planned and focused training programmes. Nevertheless, previous research is constrained and presents conflicting findings (Hastings et al. 2018). In their study, Cole et al. (2021) determined that mobile service education had a moderate or negligible impact on the probability of individuals opening a bank account. Similarly, Fernandes et al. (2019) discovered that financial education accounted for a mere 0.1% of financial activity, while Collins (2019) noted a lack of influence of financial education on saves behaviour. Nevertheless, Bruhn et al. (2018) discovered that offering monetary incentives can effectively persuade individuals to participate in financial education initiatives. Several other research (Mitchell and Lusardi 2011; Lusardi and Tufano 2015; Miller et al. 2015) have discovered compelling evidence that there is a favourable correlation between understanding financial concepts, making better financial decisions, and enhancing household wellbeing. However, the majority of financial education research do not specifically focus on the utilisation of mobile money. Mobile money service customers must exhibit advanced financial literacy, as practical and legal understanding that can safeguard against fraud is essential. Therefore, a survey will be conducted to assess the effectiveness of mobile money education programs on customer perception and behavior in Cameroon.

Statement of the Problem

The hallmark of today's rise in mobile financial services in the majority of developing countries is the use of mobile phone technology for easy access to financial services (Jack & Suri 2018). Cash is the most common and widely utilised form of payment in Burundi, where products are bought using actual cash. With monthly transfer sums up to US$400,000, Ecocash mobile money platform is the only major mobile money provider available. Compared to registered Ecocash users, m-transfers between non-registered consumers on Econet are more costly. While cash payment is convenient and easy, it has significant disadvantages over non-cash payment. These disadvantages include income leakage for businesses and governments due to anonymity, cash-related crime, robberies, cost of handling cash, easy loss, tracking difficulties, and the facilitation of money laundering (Heyman, 2017). 

Many academics have focused their attention and study on the adoption of mobile money services in poor nations (Bradley & Stewart, 2022). In their investigation into the obstacles traders encounter when utilising and embracing mobile money services in Uganda, Malinga and Maiga (2019) discovered that performance expectations, social influences, and sensitization constructs all have a major impact on traders' behavioural intention to use mobile money services for trade. This study will fully address the issue of consumers' perceptions on the adoption of mobile money services because it concentrated on the obstacles that traders experience when implementing these services and its effectiveness. Nevertheless, mobile money services education program significantly and favourably impact consumer perception and behaviour  and a business's capacity to obtain financing. This study only looked at how mobile money services affected the growth of SMEs by making money more accessible. The topic of customer perceptions regarding the adoption of mobile money services—which will be the focus of this study—is not well covered in the study. It is in the light of these that the study seeks to assess the effectiveness of mobile money education programs on customer perception and behavior in Cameroon.

 1.3  Objectives of the Study

The main purpose of this study is to assess the effectiveness of mobile money education programs on customer perception and behavior in Cameroon. Specifically, the study will;

Determine the level of awareness among mobile money users regarding available education programs.

Determine the extent to which mobile money education programs has influenced consumer behavior in Cameroon.

Examine the perception of customers towards mobile money education programs  in Cameroon.

Investigate the effects of mobile money education programs on customer perception and behavior.

Explore the challenges of mobile money education programs  in Cameroon.

1.4 Research Questions

The following questions have been prepared for the study:

What is the level of awareness among mobile money users regarding available education programs?

What is the extent to which mobile money education programs has influenced consumer behavior in Cameroon?

What is the perception of customers towards mobile money education programs  in Cameroon?

What are the effects of mobile money education programs on customer perception and behavior?

What are the challenges of mobile money education programs  in Cameroon?

1.5 Research Hypotheses

Ho: Mobile money education programs have no significant effect on customer perception and behavior in Cameroon.

Ha: Mobile money education programs have a significant effect on customer perception and behavior in Cameroon.

1.6  Significance of the Study

The outcomes of the research will offer customers in Cameroon insights into the advantages of embracing and utilizing mobile money services education program. Furthermore, it will enable financial institutions and telecom firms or operators understand how consumers view mobile money services, including whether they are easy to use, practical, or perplexing. Also, the results of this study could help mobile companies decide whether to increase their marketing and publicity budgets, streamline services, or take other research-based actions. Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the effectiveness of mobile money education programs on customer perception and behavior in Cameroon.

1.7 Scope of the study

The scope of this study is boarded on the effectiveness of mobile money education programs on customer perception and behavior in Cameroon. Empirically, this study will determine the level of awareness among mobile money users regarding available education programs, the extent to which mobile money education programs has influenced consumer behavior in Cameroon and investigate the effectiveness of mobile money education programs on customer perception and behavior.

Geographically, the study will be delimited to resident of Yaounde, Cameroon.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.9 Definition of Terms

Mobile money: a digital financial service that allows users to perform various financial transactions using their mobile devices, such as smartphones or basic feature phones.

Consumer: is an individual or entity that purchases goods or services for personal use or consumption.