The Effect of Integrating Mobile Technology in Micro Finance Institutions. Case of Small and Micro-Enterprise Program (SMEP) In Kisumu County

Abstract

Recognizing the potential that M-banking holds in strengthening the socioeconomic position of those currently lacking access to banking, especially the rural poor, Safaricom in Kenya and the two leading mobile operators in the Philippines (SMART2 and GLOBE) have both become facilitators of banking through the mobiles. Many studies carried out in the banking industry from the third world countries have found that M-banking is the best for an improved banking service in developing countries(Lyman et al, 2008; Guriting and Ndubisi 2006; Cheney 2008). However, little studies have been done on impact of integrating mobile technology banking on the performance of Micro Finance Institutions (MFIs) which therefore forms the basis of this study. The purpose of the study was to assess the impact of integrating mobile technology services on the performance of Micro Finance Institution, a case study of Small and Micro Enterprise Program (SMEP) in Kisumu County. This study was guided by the following study objectives; to find out the effect of information as a component of mobile banking service on the performance of Small and Micro Enterprise Program (SMEP), to investigate the effect of m- banking transaction as a component of mobile banking service on the performance of Small and Micro Enterprise Program (SMEP), and to explore the effect of orchestrated function of mobile banking service on the performance of Small and Micro Enterprise Program (SMEP).This study utilized descriptive survey design. A sample size of 66 respondents was used for the study. The data was obtained through the use of questionnaire which was administered through the help of the research assistants. Data analysis employed descriptive statistics, where Statistical Package for Social Sciences (SPSS) software was used to generate measures of frequencies. This study will benefit to greater extent the banking industry, the government, other economic stakeholders and the general public