Financial Process Automation and Profitability of Mwalimu National Deposit-Taking Savings and Credit Cooperative, Kenya
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Date
2024-11
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Publisher
Kenyatta University
Abstract
DT-SACCOs are a sub-set of the mainstream cooperative society and carry paramount importance in economic growth and poverty eradication through creation of employment opportunities to many individuals in the country. The conceptual link between the financial process automation services they offer under the fintech environment and their profitability has remained unresolved up to date. Generally, this inquiry interrogated the influence of process automation in financial matters had on profitability of Mwalimu National DT SACCO, Kenya. More specifically, the aim was to evaluate the influence of payment automation on profitability of Mwalimu National DT-SACCO, Kenya; to examine the influence of investment automation on profitability of Mwalimu National DT-SACCO, Kenya and to establish the influence of lending automation on profitability of Mwalimu National DT-SACCO, Kenya. The underpinning theories to the study included and not limited to diffusion of innovation theory, technology acceptance theory and dynamic capabilities theory. The study used causal research design. Mwalimu National DT-SACCO alone was representing the study population whereby survey was used to collect data from the 18 branches across the country. To collect data, a drop and pick approach was relied upon whereby all the structured questionnaires were distributed to research participants who are the top officials of Mwalimu National DT-SACCO. Data was subjected to diagnostic analysis which entailed normality test, multicollinearity test, and homoscedasticity test. Data was further analyzed using both correlation and multiple regression methodology in addition to descriptive approach which was utilized initially. The research findings revealed that payment automation influenced the profitability of Mwalimu National DT-SACCO in adverse manner which was not statistically significant. Investment advisory automation influenced the profitability of Mwalimu National DT-SACCO directly and was statistically significant and lending automation influenced the profitability of Mwalimu National DT SACCO in adverse manner which was not statistically significant. Mwalimu National DT SACCO top management will benefit from the research findings for the amounts of financial resources available or budgeted for automation of financial process automation will be optimally allocated to only those lines which are of value addition. SASRA as an agency of government will coincidentally take advantage of the outcome of this interrogation for the conceptual viewpoint addressed herein pinpoints areas of financial process automation policy making to create user-friendly enabling environment to encourage advancement in technology amongst the DT-SACCOs This study is one of its kind in the academic frontier for the theoretical concerns of the connection between financial process automation and profitability of firms is a foundation to further establish whether there exists moderating or intervening factors that can be of influence of the current model in this study.
Description
A Research Project Submitted to the School of Business, Economics and Tourism (Bet) in Partial Fulfilment for the Award of Degree in Master of Business Administration (Finance Option) of Kenyatta University, November 2024.
Supervisor
Geoffrey Mbuva