Mobile Banking Innovations and Youth Unemployment in Nairobi: Adoption Rates and Credit Score Improvements

Mobile banking innovations have gained traction as a means to bridge financial inclusion gaps in developing economies like Kenya, particularly among youth who are often unemployed and underserved by traditional banking systems. A mixed-methods approach was employed, including surveys targeting 500 unemployed youth aged 18-35, along with qualitative interviews to gather additional insights from 20 participants. Among the surveyed group, 65% reported having adopted mobile banking services within a year of service introduction in Nairobi. Notably, those who used these services saw an average increase of 20 points in their credit scores compared to non-users. Mobile banking innovations have demonstrated significant potential as a tool for increasing financial inclusion and improving credit access among unemployed youth in Nairobi City Centre. Policy makers should consider incentivizing mobile banking adoption through subsidies or targeted campaigns, while financial institutions are encouraged to provide more education on how to effectively use these services.