dc.description.abstract | The objective was to establish the effect of Fintech strategy on the financial services
delivery to the low income earners in Nairobi County. The study anchored on Porter's
Model of Generic Strategies for Competitive Advantage, Financial Intermediation
Theory, Theory of financial innovations, and Technology Acceptance Model. Theq
studyq adoptedqaqcross-sectionalq surveyq design. The study population comprised
of 38 Fintech companies in Kenya. The study targetted the management staff, one in
each of the Fintech company. Theq studyq collectedq primaryq data. Theqprimary
dataq was collectedqthrough aqquestionnaire. The data was analyzed using
descriptive statistics and inferential statistics through use of SPSS (Version 21). The
study found out that Fintechs operating in Kenya offered varied financial products and
services which ranged from credit, business advisory services and digital payment
platforms. The study findings showed that the cost of financial intermediation by
Fintechs was low which enhanced cheaper delivery of services and products. The
FinTechs had an efficient service delivery process which minimized costs and which
reduced the transaction costs in financial services delivery. The study results further
indicates that majority of the participants reported that FinTechs improved financial
inclusion of low income earners and small businesses to a great extent. The Fintechs
expanded the pool of affordable financial services and products accessible to low
income individuals and small enterprises. The regression resultsq also established
thatq there is a positiveq andq statisticallyq significantq relationshipq between
FinTechs and financial services delivery to the low income earners. The study
concludes that Fintechs in Kenya used cost leadership, differentiation and focus
strategies in serving their markets. The study also concludes that FinTechs enhanced
delivery of financial services to low income earners and small businesses to a great
extent, which subsequently leads to financial inclusion. The study recommends that
the government should promote and support FinTechs in the country, since they have
the potentialq toq provideq financialq servicesq faster, moreq efficiently,q moreq
conveniently,q andq moreq cheaplyq toq everyone,q includingq theq under-servedq
by conventional financial institutions. The study also recommends that FinTech
Companies should continue to develop products and services that target the low
income earners, and the small and micro businesses who are described as risky and
non-profitable and therefore shunned away by financial institutions. | en_US |