Effect of Mobile banking on the performance of micro-financial institution: Limbe police cooperative credit union

ABSTRACT

In an attempt to achieve high levels of performance, MFIs have undergone a number of challenges. Financial innovation in this sector has been a relevant topic since the mid-’90s.

Nowadays, also due to the present financial system situation, it comes to further relevance.

Despite the relevance of financial innovation and the ever-changing world, it’s hard to list all financial innovations specifically.

The adequate performance of financial institutions is of crucial importance to their customers.

MFIs like many other financial service industries, facing a rapidly changing market, new technologies, economic uncertainties, competition and demanding customers have created an unprecedented set of challenges.

The study sought to establish the effects of Mobile money transactions on the financial performance of the MFIs in Cameroon.

The study objective was to determine the effects of mobile money transactions on the financial performance of MFIs in Cameroon. The study target population was chosen within one of the cities in the southern part of the country ( Buea).

The study used a descriptive survey design. The data collection was primary data and the collected data was analysed using descriptive statistics and multiple regression analysis.

From the findings, the significance value was .004 which is less than 0.05 thus the model is statistically significant in predicting how mobile money transactions, capital ratio, liquidity ratio, efficiency ratio, expenses management ratio and bank size affect the financial performance of MFIs.