Electronic Funds Transfer and Service Delivery in Saccos: A Case Study of Ng’arisha Sacco, Bungoma Kenya

Abstract

Electronic funds transfer is generally expected to improve efficiency in funds transfer, payments, reporting, receipting and thus service delivery in any organization. However, SASSRA reports of 2018 show that despite Sacco’s having institutionalized electronic operations in their accounting process, efficiency and effectiveness in service delivery remains elusive in most aspects. The main objective was to determine the effect of electronic funds transfer on the service delivery in Ng’arisha Sacco, Bungoma Kenya. The research was guided by Schumpeter’s theory of innovation and technology acceptance model. This study embraced descriptive survey research design. This study had a target population of 127. Census sampling was used where the entire targeted population was sampled. Data was gathered using questionnaires with closed-ended structured questions that were prepared on a five-point Likert scale. Statistical Package for Social Sciences (SPSS) version 26 software was utilized for data analysis. Data was analysed in form of descriptive and inferential statistics. The research hypothesis posited H01: E-funds transfer has no significant effect on service delivery in Saccos. Thus, the model was significant and so the null hypothesis was rejected on the ground that E-funds transfer had a significant and moderate strong positive linear correlation with service delivery in Saccos. Based on the discoveries, it pints that in the Sacco industry, service delivery is crucial. As a result, there is a strong link between e-funds transfer practices and Ng’arisha SACCO service delivery. The study recommends that, Saccos should employ electronic transfer of funds for their operations to enhance service delivery.