Influence of Adoption of Mobile Banking Strategy on the Financial Performance of Micro-Finance Institution in Nanyuki Town, Kenya
Abstract
The study aimed at examining the influence of adoption of mobile banking on the financial performance of Micro Finance Institutions in Nanyuki town, Kenya. The theory guiding the study was the Technology Adoption Model developed by Davis in 1989. The research design adopted was descriptive research design. The target population was 142 management level employees from the three-deposit taking Micro-Finance institutions. The sample size comprised of 41 respondents. Data was collected using questionnaires while data analysis was conducted using Statistical Package of Social Sciences (SPSS) Version 22.0. Descriptive and inferential statistical techniques were used in data analysis. The findings established that financial accessibility was the top attribute for adoption of mobile banking strategy among the management of MFIs. Regression results revealed that mobile banking positively and significantly influence financial performance of MFIs. Adoption of mobile banking strategy was viewed to result to increased financial accessibility and effective service delivery of MFIs. However, a number of MFIs had not fully adopted the mobile banking platform. The study concluded that there is necessity for embracing the mobile banking platform by all MFIs to increase the number of transactions that results to increased financial performance of MFIs. The study recommendation is that MFI should adopt mobile banking as a modality for creating efficiency and effectiveness in customer outreach that eventually enhances financial performance.
Keywords: Mobile banking, financial performance, Micro Finance Institutions
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