Financial Innovation, Financial Inclusion and Financial Performance of Micro Finance Institutions (MFIs) in Mbarara City
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Date
2023
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Makerere University Business School
Abstract
This study examined financial innovation, financial inclusion and financial performance of micro finance institutions in Mbarara city. A cross sectional survey design was employed whereby data were collected at a specific point in time. Given the nature of research objectives, correlation analysis was performed to test associations between the study variables, while a hierarchical regression analysis was used to test both the individual and combined predictive power financial innovation and financial inclusion on financial performance Data was analyzed using SPSS. The study results show that there is a positive and significant relationship between financial innovation and financial performance. There was also a positive and significant relationship between financial innovation and financial inclusion. It was further established that there was a positive and significant relationship between financial inclusion and financial performance. The study recommends that Micro finance institutions should continuously innovate to create new
processes and products that will ease the customer experience. Micro finance institutions should also encourage access and usage of their products through extending their services to the underserved population especially in the rural areas. The government should create policies that encourage innovation in the microfinance institutions such that it can achieve financial inclusion of its population leading to overall economic development. The study suggests that future research may find out the relationship of other variables like crisis management and team competences to find out if they explain the remaining percentage of financial performance.
Description
Research Dissertation Submitted to Makerere University Business School (Faculty of Graduate Studies and Research) in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration of Makerere University. (Plan A).
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Citation
Jevineal, T. (2023) Financial Innovation, Financial Inclusion and Financial Performance of Micro Finance Institutions (MFIs) in Mbarara City. Unpublished Masters Dissertation Makerere University Business School. Kampala, Uganda.