EFFECTS OF M-BANKING TECHNOLOGY ON FINANCIAL PERFORMANCE OF MICRO FINANCE INSTITUTIONS IN KENYA

  • WANYORO J
N/ACitations
Citations of this article
12Readers
Mendeley users who have this article in their library.

Abstract

Microfinance institutions have been in the process of significant transformation. The force behind the transformation of these institutions is innovation in information technology. Information and communication technology is at the Centre emergence and development of M-Banking technology in Kenya. The rapid development of information technology has made it possible for financial institutions to reach the unbanked population in Kenya. This research aims at finding out how M-Banking technology has improved the performance of Micro Finance institutions in Kenya with regard to improved operation efficiency, cost reduction on part of both the Micro-Finance institutions as well as the customers it also examines challenges that microfinance institutions face in the adoption of M-Banking technology and solution to these challenges. The research used both primary and secondary data. The questionnaire included both structured and unstructured questions. The questionnaire was administered through the drop and pick method. The research employed census study this is due to a small number of Micro Finance institutions who are members of Association of Micro Finance Institutions of Kenya (AMFI). After collection, data was coded into Statistical Package for Social Sciences (SPSS version 21) for analysis. The study used both descriptive and inferential statistics to analyze the data. The study found out that there exist a negative relationship between M-banking technology and financial performance of Micro-Finance institutions in Kenya, the research recommends that there is a need for a serious study on the M-banking system so that the issues pointed out by the clients can be mind leading to a satisfied clientele. The Micro Finance Institutions should also do follow-up surveys on the clients from time to time to ensure that their service quality is always at par. Keywords: M-banking, Microfinance institutions, information technology

Cite

CITATION STYLE

APA

WANYORO, J. (2017). EFFECTS OF M-BANKING TECHNOLOGY ON FINANCIAL PERFORMANCE OF MICRO FINANCE INSTITUTIONS IN KENYA. Strategic Journal of Business & Change Management, 4(2). https://doi.org/10.61426/sjbcm.v4i2.419

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free