Effect of Integrated Mobile Banking Services on Efficiency Among Deposit-taking Savings and Credit Cooperative Societies in Kenya
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Date
2022Author
Ngangi, Macdonald K
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
DT-SACCOs play a role in financial intermediation which has included 6.3%
Kenyans and approximately 60% of Kenyans are dependent on them. The last decade
has seen DT SACCOs in Kenya embrace integrated mobile banking. This innovation
of integration of mobile banking has revolutionized the convenient means of
accessing financial services. Mobile banking platforms are perceived as enablers for
formal financial services through remote transactions. The main aim of this research
was determining integrated mobile banking effect on efficiency of DT-SACCOs in
Kenya. The independent variables for the research were integrated mobile banking,
credit risk, liquidity risk, SACCO size and capital adequacy while the dependent
variable was efficiency measured as the ratio of outputs to inputs. The research was
guided by financial intermediation theory, diffusion of innovation theory and
technology acceptance model. Descriptive research design was utilized in this
research. The 175 DT-SACCOs in Kenya as at December 2021 served as target
population. The research obtained secondary data for five years (2017-2021) on an
annual basis from SASRA and individual DT-SACCOs annual reports. Descriptive,
correlation as well as regression analysis were undertaken and outcomes offered in
tables followed by pertinent interpretation and discussion. The research discovered a
0.083 R square value implying that 8.3% of changes in DT-SACCOs efficiency can
be described by the five variables chosen for this research. The multivariate
regression analysis further revealed that individually, both credit risk and liquidity
risk have a negative effect on efficiency of DT-SACCOs as shown by (β=-0.157,
p=0.000) and (β=-0.254, p=0.000) correspondingly. Integrated mobile banking
unveiled a positive though not statistically significant influence on efficiency.
SACCO size displayed a positive and significant efficiency influence as shown by
(β=0.104, p=0.008) while capital adequacy displayed a positive and not significant
influence (β=0.021, p=0.592). The study recommends that DT-SACCOs should work
at reducing their liquidity risk and credit risk as these two adversely affects efficiency
in a negative way. Future research ought to focus on other financial institutions in
Kenya to corroborate or refute the conclusions of this research.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
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