Effect ATM Banking on Performance of Microfinance Banking in Kenya

Authors

  • Eunice Wangari Ndirangu Dedan Kimathi University of Technology
  • Prof. David Kiragu, PhD Lecturer: School of Business Management and Economics: Dedan Kimathi University of Technology
  • Dr Antony Ngunyi, PhD Lecturer: School of Science: Dedan Kimathi University of Technology
  • Dr Mohamed Shano Lecturer: School of Business and Economics: Meru University of Science and Technology
  • John Githii Kimani Director: Finstock Evarsity College

DOI:

https://doi.org/10.47672/ajf.1305

Keywords:

ATM Banking, Performance, Microfinance Banks

Abstract

Purpose: Microfinance banks are investing in ATM banking to satisfy the requirements of the households of accessing financial services and to achieve inclusive economic growth. The study sought to evaluate the effect of ATM banking on performance of the microfinance banks in Kenya. The study was postulated by technology acceptance model.

Methodology: The study adopted positivism philosophy, descriptive research design and census survey. The target population was the thirteen Microfinance Banks regulated by the Central Bank of Kenya. Primary data was collected using questionnaires which were self-administered. Descriptive and inferential statistics were used to calculate the simple means; standard deviations and to make conclusions from the information. Data was presented using frequency tables, and correlations table. Factor analysis was conducted to reduce the number of factors and Kaiser Meyer Olkin and Barlett's test of Sphericity were tested and total variance explained, scree plot and rotated component matrix were drawn. Model R - Square, ANOVA Statistics and regression coefficients R were used to test the hypothesis of bivariate model.

Findings: The results show that ATM banking had an R square of 0.931 and a p value of 0.000 to explain the performance of microfinance banks. The study concluded that there is a statistically significant relationship between ATM banking and performance.

Unique Contribution to Theory, Practice and Policy: The study recommends that microfinance banks should reinforce the security of the ATM machine and partner with other banking institutions to invest in ATMs to reduce operation cost and this will enhance performance of the MFBs.

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Published

2022-12-16

How to Cite

Ndirangu, E., Kiragu, D., Ngunyi, A., Shano, M., & Kimani, J. (2022). Effect ATM Banking on Performance of Microfinance Banking in Kenya. American Journal of Finance, 7(4), 1–10. https://doi.org/10.47672/ajf.1305

Issue

Vol. 7 No. 4 (2022)

Section

Articles

License

Copyright (c) 2022 Eunice Wangari Ndirangu, Prof. David Kiragu, PhD, Dr Antony Ngunyi, PhD, Dr Mohamed Shano, John Githii Kimani

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.