PAYMENT AUTOMATION AND PROFITABILITY OF MWALIMU NATIONAL DEPOSIT TAKING SACCO, KENYA
PAYMENT AUTOMATION AND PROFITABILITY OF MWALIMU NATIONAL DEPOSIT TAKING SACCO, KENYA
Chamakany Lemaswan Boaz - Master of Business Administration (Finance Option) of Kenyatta University, Kenya
Dr. Geoffrey Mbuva - Kenyatta University, Kenya
ABSTRACT
DT-SACCOs are a sub-set of the mainstream cooperative society and carry paramount importance in economic growth and poverty eradication through creation of employment opportunities to many individuals in the country. The conceptual link between payment automation on profitability of DT-SACCO firms is still unresolved. Specifically, the aim of this study was to evaluate the influence of payment automation on profitability of Mwalimu National DT-SACCO, Kenya. The underpinning theories to the study included and not limited to diffusion of innovation theory and technology acceptance theory. The study used causal research design. Mwalimu National DT-SACCO alone was representing the study population whereby survey was used to collect data from the 18 branches across the country. To collect data, a drop and pick approach was relied upon whereby all the structured questionnaires were distributed to research participants who are the top officials of Mwalimu National DT-SACCO. Data was analyzed using both correlation and multiple regression methodology. The research findings revealed that payment automation influenced the profitability of Mwalimu National DT-SACCO in adverse manner which was statistically significant. Mwalimu National DT-SACCO top management will benefit from the research findings for the amounts of financial resources available or budgeted for automation of payments will be optimally allocated to only those lines which are of value addition. SASRA as an agency of government will coincidentally take advantage of the outcome of this interrogation for the conceptual viewpoint addressed herein pinpoints areas of payment automation policy making to create user-friendly enabling environment to encourage advancement in technology amongst the DT-SACCOs This study is one of its kind in the academic frontier for the theoretical concerns of the connection between payment automation and profitability of firms is a foundation to further establish whether there exists moderating or intervening factors that can be of influence of the current model in this study.
