INFLUENCE OF MOBILE BANKING SERVICES ON THE FINANCIAL PERFORMANCE OF DEPOSIT TAKING SAVINGS AND CREDIT CO-OPERATIVES IN MERU COUNTY, KENYA

Abstract

This paper developed an original framework to explore the direct effect of mobile banking services on the financial performance of deposit taking Savings and Credit Cooperatives (SACCOs). The study applied two original concepts – technology adoption and performance to develop an integral model that explores the growth of an organization. The researchers employed empirical methods, encompassing utilization of questionnaire survey to verify the hypotheses and explore their managerial and theoretical implications. This study has summarized literature on mobile banking services and customer satisfaction into a new managerial framework of organizational performance framework. It utilized new arrangement of two constructs; technology adoption and mobile service, to develop an original framework that enhances organizational performance. The study adopted a descriptive research design and data was collected from the top management of the 11 deposit taking SACCOs. This study established a positive and significant relationship between mobile banking services and financial performance of the deposit taking SACCOs. Although past research has highlighted the relevant issues about organizational performance, few studies have explored this phenomenon within the financial sector in Sub-Saharan context. Therefore, this paper developed the research framework of mobile phone money to fill the research gap specifically in Kenya Financial industry context.