Effects of Mobile Banking on the Financial Performance of Deposit Taking Saccos in Kenya
Abstract
In Kenya, mobile banking has been widely adapted and embraced in the recent years. It has enables the transfer of money from one location or account easy and convenient. With this, financial institutions, among which include banks, deposit taking Saccos, normal Saccos and even microfinance banks have adopted the use of mobile banking to convey services to their clients. Mobile banking requires complex infrastructures that this institutions have put in place to ensure proper functioning of the system. The research therefore was aimed to investigate if the investment of this structures in deposit taking have in way contributed to their financial performance.
The research employed a descriptive research design where from a population of 164 deposit taking Saccos in Kenya, a sample of 20 was used to collect data. Secondary data of the number of customers that transact using mobile banking and amounts transacted annually were collected from the samples for the past 5 years. Data was analyzed and the findings indicated that there is indeed a positive relationship between mobile banking and financial performance in deposit taking Saccos in Kenya. Tests like regression analysis and correlation coefficient were used to determine the relationship between the variables.
From the study various conclusions were derived among which, the deposit taking Saccos should invest more on the mobile banking so as to increase the amount of money people can transact using mobile banking. The government and the mobile banking providers should reduce the transaction costs involved so as to encourage more customers’ to use mobile banking as it easy and convenient for the clients.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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