| dc.description.abstract | Financial institutions are now able to become more efficient while also putting the
needs of the client first thanks to technological advancements in the digital financial
sector. With the increasing competition, DT SACCOs in Kenya have sought to leverage
on the different digital financial innovations to enhance their financial and operational
performance. Despite adopting such innovations, SACCOs continue to deal with
substantial percentages of loans that are not performing and a spike in non-performing
loans is an indication of the typically negative performance of loans. This was the basis
for this study which sought to investigate the effect of digital financial innovations
adopted by SACCOs in Mombasa County on their loan performance. The researcher
analyzed three theories—the diffusion of innovation theory, the open innovation
theory, and the disruptive innovation theory—as well as the literature of related studies
in order to identify the research gaps that served as the foundation for this study. A
sample size of 70 respondents was drawn from a target population of 190 using the
Nassiuma formula. The demographic for the study was the board of directors and
personnel of the six DT SACCOs in Mombasa County. The study used a descriptive
research design. Both primary and secondary sources of information were used to
gather the data. The structured questionnaire underwent a pilot test to determine its
validity and reliability for the primary data. The various SACCO financial accounts,
reports, and databases were used to gather the secondary data. SPSS, a computerized
statistical package for social sciences, and Excel were used to examine the data. The data
was examined using descriptive statistics, such as mean, figures, frequency tables, and
standard deviation. Inferential statistics was done using the multiple regression analysis
and the z test. The results of the regression model demonstrated a statistically
significant effect between process digitalization, mobile banking technologies,
application programming interfaces, and online banking and loan performance. The
study findings indicate that digital financial innovations have a substantial effect on
loan performance in DT SACCOs in Mombasa. In conclusion, DT SACCOs have seen an
increase in the quantity and quality of loans as well as better monitoring and loan
repayment convenience upon adoption of digital financial innovations. Ultimately, the
number of loans in default has significantly reduced. the number of loans in default.
The study recommends that DT SACCOs should review their operations to clearly
understand other factors that are contributing to the increase in members defaulting in
paying their loans on time | en_US |
