TITLE:
Effect of Mobile Credit on Operational Efficiency in Commercial Banks in Kenya
AUTHORS:
Koki F. Kinyanzui, George Achoki, Peter Kiriri
KEYWORDS:
Mobile Credit, Operational Efficiency, Commercial Banks
JOURNAL NAME:
Open Journal of Business and Management,
Vol.6 No.4,
August
31,
2018
ABSTRACT:
This study sought to establish the effect of mobile credit on operational efficiency
in commercial banks in Kenya. The study utilized primary as well as
secondary data on access to mobile credit and its effects on the performance
of the organization. A questionnaire was the primary data collection tool and
composed of open ended and closed ended questions. Data collected was
analyzed using multiple linear regression analysis at a 95% confidence interval.
Analyzed data was presented using tables and figures for ease of interpretation.
Operational efficiency is the goal of any manager in a customer service
driven sector. Some of the strategies to achieve operational efficiency include
managerial behavior change, promoting operational optimization and use of
technology. Mobile credit introduction improved operational efficiency in
commercial banks. Mobile credit introduction enhanced operational efficiency
in loans collection, returns on shareholders. The operational efficiency
performance indicators utilized in this study were: return on assets, earnings
per share and proportion of non-performing loans. On the other hand, proportion
of non-performing loans declined after the introduction of mobile
credit indicating increased operational efficiency in debt collection. The introduction
of mobile credit significantly enhanced organization efficiency as
measured by metrics such by brand image building, ability to adapt to market
changes and perceptions of reliability in the customer’s mind. Mobile credit
introduction improved operational efficiency in commercial banks. Mobile
credit introduction enhanced operational efficiency in loans collection, returns
on shareholders. Overall, it has been accepted that the use of technology
is one of the major strategies used to enhance operational efficiency. The
findings of this study propose that the use of mobile credit has enhanced debt
collection efficiency and revenue generation efficiency.