The Effect of Electronic Money Transfer Systems on the Financial Performance of Financial Institutions in Kenya (Case Study of SUMAC Deposit Taking Microfinance Ltd)
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Date
2021
Authors
Mukami, Nelly Wangui
Nzuk, David
Journal Title
Journal ISSN
Volume Title
Publisher
International Research Journal Publishers
Abstract
This research paper sought to identify the various EMT systems in Kenya, their effects on
the profitability, liquidity and the business net worth of financial institutions in Kenya.
For the purposes of this study, Sumac DTM being a financial institution was studied. Data
was collected primarily by use of both questionnaires and secondary data. The
questionnaires consisted of both open and closed questions and were sent to the various
respondents who were key employees in the institution under study. Data was analyzed
and presented using tables, pie charts and graphs. The study also revealed various benefits
of using the EMT services which include speed, profitability and convenience. The main
challenge was found to be security issues such as money laundering and identity theft
especially due to more sophisticated technology. From these findings, it was
recommended that EMT systems need more regulation and monitoring in order to protect
the users from losing their hard earned money and also the government from losing
revenue through money laundering which could have greater repercussions on the
economy such as increasing inflation. A tighter regulatory framework would also help in
overseeing an efficient, transparent and effective EMT system hence a stable financial
environment. It was also recommended that since the individual EMT services are very
broad and tailored to meet the individual need of the institution, there is need for an in
depth study on each EMT service due to time constraint.
Description
A research article published in International Research Journal of Business and Strategic Management
Keywords
Electronic Money Transfer Systems, Financial Performance
Citation
Wangui, M., & Nzuki, D. (2021). THE EFFECT OF ELECTRONIC MONEY TRANSFER SYSTEMS ON THE FINANCIAL PERFORMANCE OF FINANCIAL INSTITUTIONS IN KENYA (CASE STUDY OF SUMAC DEPOSIT TAKING MICROFINANCE LTD). International Research Journal of Business and Strategic Management, 2(1).