Information Communication Technology as a Strategic Tool in Microfinance Institutions in Kenya
Abstract
lCT is a key enabler. It has rewritten business rules and transformed business rules and
transformed businesses. It has added value to business by reducing costs and improving
communication and co-ordination between activities so that they run effectively. The
study sort to establish the extent to which lCT is used as a strategic tool in MFls in order
to compete effectively and survive in a dynamic and turbulent environment.
Microfinance is the supply of loans, savings, money transfers, insurance and other
financial services to low income people. Micro finance institutions (MFls) which
encompass a wide range of providers that vary in legal structure, mission and
methodology offer these financial sources to clients who do not have access to
mainstream banks or other formal financial service providers. A census study was carried
out; data was collected through a questionnaire method. Questionnaires were
administered through mail survey and e-mail. The respond rate was 76%. Findings of the
study indicated that all MFls have a vision, mission and a business strategy (100%). The
extent to which MFls use lCT for strategic roles such as development of business
strategy, marketing, attracting customers, market expansion, provision of better customer
service and development of new market was to a great extent .Among the challenges
faced by MFl as they embrace ICT is high costs involved and regulatory barriers was not
a challenge at all.
Citation
MBASponsorhip
University of NairobiPublisher
University of Nairobi School of Business, College of Humanities and Social Sciences