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.
Highlights
Operational efficiency is the major goal for most organizations and companies
The findings of this study propose that the use of mobile credit has enhanced debt collection efficiency and revenue generation efficiency
The overall mean score of how mobile credit manifestations influence operational efficiency is 3.8318 and standard deviation of 0.87506. This is a high mean score implying that the managers were in agreement that mobile credit influences operational efficiency of commercial banks offering mobile credit
Summary
Operational efficiency is the major goal for most organizations and companies. It is the goal of any manager in a customer service driven sector [1]. In Africa, there has been immense growth in mobile credit. Most countries in Africa have mobile credit. In some markets such as Kenya, there has been phenomenal growth in mobile credit while in others the growth has been stifled [6]. Some of the countries with robust micro credit facilities and services include Uganda, Tanzania, Rwanda, Democratic Republic of Congo, South Africa, Namibia, Zimbabwe, Zambia, Madagascar, Nigeria, Ghana, Niger, Cameroon and Egypt
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