INFLUENCE OF ELECTRONIC BANKING SERVICE MANAGEMENT ON FINANCIAL PERFORMANCE OF DEPOSIT TAKING SACCOS IN NAIROBI COUNTY
Abstract
This study examined the influence of electronic banking service management on financial performance of deposit taking SACCOS in Nairobi County. The study employed a descriptive survey research design. The target population of this study was senior management staff in the deposit taking SACCOs in Nairobi County from where Yamane’s sampling formula was used to get sample size; and respondents were selected using simple random sampling technique. The questionnaires were administered to senior management staff in the deposit taking SACCOs head offices using a drop and pick method. Data analysis was computed by SPSS 24. The analyzed data was presented in the form of tables and graphs. Questionnaires were used for data collection. Both descriptive and inferential statistics indicated that all of the study’s independent variables (phone banking service, digitized financial communication service, electronic saving mobilization service, and online loaning service) significantly influenced financial performance of deposit taking Saccos in Nairobi County (dependent variable). The study concluded that one, effective use of secure and upgraded phone banking system can reduce financial transaction costs and enhance financial performance of deposit taking Saccos. Secondly, efficient use of cost effective digitized financial communication services by Saccos can reduce manual communications costs and boost financial performance of deposit taking Saccos. Thirdly, introduction and effective use of electronic savings mobilization services can attract huge customer savings thus positively impact on financial performance of deposit taking Saccos. The study recommended that one, deposit taking Saccos must adopt secure, upgraded and efficient phone banking platforms to enable them serve many customers with reduced banking costs. Secondly, deposit taking Saccos should embrace secure digitized financial communication service using bulk messaging, controlled social media platforms to enable them attract and respond to many customers concerns. Thirdly, deposit taking Saccos should roll out secure and upgraded online loaning services for easier access of loan products by its customers, while checking on loan default ratios that can arise from fraudulent online loan applicants. A similar study can be done using longitudinal design for a span of five years to assess the efficacy of electronic banking services in deposit taking Saccos.
Key Words: Phone Banking Service, Digitized Financial Communication Service, Electronic Saving Mobilization Service, Online Loaning Service
CITATION Shabiha, E. A., & Otinga, H. (2020). Influence of electronic banking service management on financial performance of deposit taking SACCOS in Nairobi County. The Strategic Journal of Business & Change Management, 7(3), 703 – 720.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i3.1702
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