The Impact of Mobile Money Services on the Performance of Microfinance Institutions in Uganda a Case of Pride Microfinance Limited

Abstract

The purpose of the study was to examine the impact of mobile money services on the performance of microfinance institutions in Uganda taking Pride Micro Finance Limited as a case study, basing on the following objectives; to find out the effect of mobile money payments on performance of microfinance institutions, to establish the effect of mobile money financial transactions on performance of microfinance institutions, to examine the effect of mobile money transfers on performance of microfinance institutions.

A sample of middle level managers, low level managers and non-managerial staff members were used to collect data by use of self-administered questionnaires and observation to determine the mobile money services utilized by micro finance institutions and employees’ preference on the use of these MMS over financial services provided by microfinance institutions. The study design was cross sectional and quantitative approach was employed. Data was collected and there after entered in Statistical Packages for Social Scientist (SPSS) for analysis, frequency tables, graphs, and correlation coefficients were drawn and conclusions made from the results.

Findings revealed a moderate positive relationship between mobile money payments and the performance level of Pride Micro Finance Limited, a very strong positive relationship between mobile money financial services and the performance level of Pride Micro Finance Limited and a very strong positive relationship between mobile money transfers services and the performance level of Pride Micro Finance Limited. Pride microfinance was recommended to invest in mobile banking even further because the opportunities mobile money possesses are vast and most of its future prospects are in line with the pillars of microfinance institutions.

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