Title: Strengthening technology risk management in mobile money lending

Authors: Christopher Moturi; Geofrey Ogoti

Addresses: School of Computing and Informatics, University of Nairobi, Nairobi, Kenya ' School of Computing and Informatics, University of Nairobi, Nairobi, Kenya

Abstract: Innovative mobile money services have grown tremendously in the East African market. While there are positive effects of technology-enabled financial inclusion, risks exist. This study sought to strengthen the capacity of technology risk management by proposing practices and strategies that can protect the financial technology ecosystem. Applying the ISACA Risk IT Framework, data was collected in June 2019 from the leading digital lenders in Kenya. The study found that while regulated mobile lenders have an IT risk management environment that is viewed as a critical success factor, unregulated entities have minimal integration of IT risk management essentials. This study is useful to many developing countries where governments are working towards having secure and strong financial systems that contribute to the Millennium Sustainable Development Goals. Regulators and practitioners must ensure the financial technology lending ecosystem is protected from risks that could reverse gains made from witnessed developments in financial inclusion.

Keywords: mobile money lending; technology risk management; risk IT framework; mobile applications; mobile regulation; digital lending.

DOI: 10.1504/IJFSM.2020.111105

International Journal of Financial Services Management, 2020 Vol.10 No.3, pp.217 - 238

Received: 22 Mar 2020
Accepted: 01 Jul 2020
Published online: 09 Nov 2020 *

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