Mobile Banking Services and Financial Performance of Saccos in Mandera County, Kenya
Authors: Omar Ahmed Osman , Koori Jeremiah 
Published: November 2022

In spite of the role played by mobile banking as supported by the statistics shown above, how SACCOS’ financial performance is affected by mobile banking services. Therefore, this study sought to determine the influence of mobile banking services on financial performance of SACCOS in Mandera County. The specific objectives were to establish the effect of mobile money transfer, mobile account management, mobile credit facilitation and mobile bill presentment on financial performance of selected SACCOs in Mandera County. The study was guided by diffusion of innovation theory, theory of technological acceptance model and the task technology fit theory. A descriptive research design was deployed. The target population for this was all the selected SACCOs in Mandera County. There are 39 registered SACCOS in the County. This study focused on the 39 SACCOs distributed in all constituencies in Mandera County. Three respondents were selected from every SACCo to form a total population of 117 respondents. The target population was the management staff of the selected SACCOs. Stratified random sampling technique was deployed in obtaining sample of 35 SACCOs and 90 management staff. The study will collect primary data using semi-administered questionnaires containing open and close ended questions. Descriptive statistics including standard deviation, means, frequencies and percentages will be utilized. Frequency in tables were used in quantitative data presentation. Regression analysis will be done to illustrate how mobile money transfer, mobile account management and mobile credit facilitation and mobile bill presentment affects financial performance of selected SACCOs in Mandera County. The study found the mobile money transfer, mobile account management, mobile credit facilitation and mobile bill presentment had a positive significant relationship with the financial performance of selected SACCOs in Madera County. The study concluded that cash transfers influence mobile money transfer performance also to a very large extent and there was linear relationship between mobile money transfer and the performance of the inception of mobile phone financial transaction has brought a lot of benefits to the SACCOs in Mandera County. Mobile banking services such as airtime top up service has enabled commercial banks to increase their sales volumes, reducing costs of distribution and increasing customer satisfaction which ends up influencing financial performance positively. New payment technologies like bill payments have not only reduced the settlement time required for transactions but also financial costs that may arise from the processing of bill payments. Mobile credit facilitation to a larger extent impacts the financial performance of commercial banks in Kenya in that it helps reduce unnecessary cost, increase efficiency and improves on service delivery to customers. The study recommended that the management of the SACCOs in Mandera County should conduct research on other possible m-banking packages to capture market niches that competitors have not identified hence expand on the market share leading to improved financial performance. The SACCOs have put in place measures become more competitive by keeping pace with the technological developments. The SACCOs in Mandera County need to consider using person to person payments to improve on their financial performance and the SACCOs should ensure security and privacy on telephone services to avoid impersonation and fraud involved.