Information Communication Technology Adoption and Performance of Deposit Taking Savings and Credit Co-Operative Societies in Kiambu County, Kenya
Loading...
Date
2021
Authors
Ndungu, Julius Wanjohi
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Organizations use Information Communication Technology (ICT) to transform their internal processes, data processing, and services delivery to consumers. The Savings and credit cooperatives (SACCOs) regulator require them to implement robust ICT platforms as part of the prudential standards set. Though there is an observable adoption of ICT by Deposit Taking (DT) SACCOs to provide services to members, there are concerns of how the DT SACCOS have adopted ICT, similarly, there is a noted diminishing rate of growth in performance in regard to DT SACCOs’ turnover, membership growth, savings and credit mobilization. The intentions of the study was to determine; the impact of mobile banking on DT SACCOs and performance in Kiambu County, Kenya, the influence of agency banking on performance of DT SACCOs in Kiambu County, Kenya, the usage of Automated Teller Machine on the performance of DT SACCOs and to assess SACCOs’ data security policies and controls. The study used the technology acceptance model, Diffusion of innovation and Resource based view theory. The study used a descriptive research design on a population of 14 deposit-taking SACCOs which were licensed and operating in Kiambu, Kenya between the years 2010 and 2017. The researcher used the purposive sampling technique to pick 4 respondents, who were the Branch Manager, ICT, Operations, and Finance managers, per DT SACCO. This translated to a targeted population of 56 respondents. The primary data was collected using self administered semi structured questionaire to the respondents. The research used multiple regression analysis techniques to analyse data while the presentation of the findings was done using tables and graphs. The study found that respondents considered mobile banking as a tool to enable members to access services anywhere-anytime as well as positively affecting DT SACCOs Performance. It was further found that the majority of the respondents felt safe as users while using the Networks and internet services as well as affirming that Saccos used stored data to determine the member’s financial behavior. Similarly, it was affirmed by the respondents that agency banking positively affected commissions and the overall income of the SACCOs. The study found that mobile banking helped the DT-Saccos to improve their performance by enabling services accessible through mobile. Additionally, the study found that agency banking positively enlarged the income-generating channels as the DT Saccos do not need to have physical branches as they can deliver services through virtual operations. Lastly, the study found that data security policies are important to business continuity in these Saccos. DT-Saccos can utilize data analytics to customize services and communication to their members. The study therefore concluded that ICT adoption could explain 56.7 % of the positive variations on the performance of DT SACCOS in Kiambu County. The study, therefore, recommends that DT Saccos ought to deepen their investments in ICT innovations as the technology offers effective and efficient channels which in turn positively influence their overall performance. The Saccos further needs to frequently revamp their technological innovations to match market requireme
Description
A Research Project Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of Degree in Master of Business Administration (Mis Option) of Kenyatta University, November, 2021
Keywords
Information Communication Technology, Adoption, Performance, Deposit Taking Savings, Credit Co-Operative Societies, Kiambu County, Kenya