An Assessment of Digital Lending in Uganda Microcredit Foundation Ltd.
| dc.contributor.author | Bameka Marion | |
| dc.date.accessioned | 2026-06-10T07:08:47Z | |
| dc.date.available | 2026-06-10T07:08:47Z | |
| dc.date.issued | 2025-12-22 | |
| dc.description | This is a master's thesis. | |
| dc.description.abstract | This study examined digital lending practices at Uganda Microcredit Foundation Ltd (UMF), focusing on understanding the current state of these practices, the challenges faced, and suggestions to improve the performance of digital lending. The research was driven by the growing reliance on digital financial services within microfinance institutions and the pressing need to evaluate their effectiveness and impact. The problem that guided this inquiry stemmed from rising default rates and operational inefficiencies observed in UMF’s digital lending system, which threatened both institutional sustainability and customer trust. To explore this issue comprehensively, the study was guided by three specific objectives: to assess the current digital lending practices at UMF, to identify the challenges associated with these practices, and to examine strategies that can be employed to improve them. The study adopted a cross-sectional descriptive research design, which allowed for the collection of data at a single point in time, providing a snapshot of staff perceptions and experiences related to digital lending. The population consisted of 150 staff members at UMF headquarters, from which a sample of 108 was purposively selected. A structured, self-administered questionnaire comprising both closed and open-ended items was used as the primary data collection tool. Quantitative data were analyzed using descriptive statistics. Key findings indicated that while UMF has automated several aspects of its digital lending process and demonstrated commitment to customer feedback, issues such as high default rates, poor credit assessment tools, technical glitches, and inadequate borrower literacy continue to hinder performance. Staff strongly supported strategies aimed at customer education, system upgrades, and improved credit risk profiling. Moreover, the study revealed that expanding payment options and enhancing staff training were also viewed as critical measures. Based on the findings, the study recommended strengthening digital literacy programs for clients, updating credit assessment models using advanced analytics, and establishing real-time loan monitoring tools. These steps, combined with stronger data privacy protections and collaborative efforts with fintech partners, were proposed to make digital lending more effective and inclusive at UMF | |
| dc.description.sponsorship | Prof. Vincent Bagire, (PhD) (Makerere University Business School) & Dr. Tom Patric Mugizi, (PhD) (Makerere University Business School) | |
| dc.identifier.citation | Bameka, M. (2025) An Assessment of Digital Lending in Uganda Microcredit Foundation Ltd. Makerere University Business School. | |
| dc.identifier.uri | http://hdl.handle.net/20.500.12282/5569 | |
| dc.language.iso | en | |
| dc.publisher | Makerere University Business School | |
| dc.rights | Attribution-NonCommercial-NoDerivs 3.0 United States | en |
| dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/us/ | |
| dc.title | An Assessment of Digital Lending in Uganda Microcredit Foundation Ltd. | |
| dc.type | Thesis |