Adoption of digital alternative delivery channels on operational performance in Saccos

Abstract

The current study was on the adoption of digital alternative delivery channels (DADC) on operational performance in SACCOS: evidence from selected cases in Tanzania. The objective of this study was to find out the scope of adoption of digital alternative delivery channels in SACCOS, examine members' experience with respect to digital alternative delivery channels in Tanzania SACCOS, and determine the impact of digital alternative delivery channels on operational performance of the SACCOS in Tanzania. A concurrent research design was used whereas the research approach was a mixed research approach involving quantitative and qualitative data collection. Data were collected through self-administered questionnaires for 281 respondents from 20 selected SACCOS and 7 key informant interviews using an interview guide. Quantitative data was summarized and presented in tables, frequencies, mean scores and percentages tables. The study found that the scope of adoption of digital alternative delivery channels was high with a mean score of 3.78 and a standard deviation of 0.627. Mobile Banking, Wallet/App, Automated Teller Machines (ATM), Internet Banking (1B) and Point of Sale (POS) were the widely adopted digital alternative delivery channels among the SACCOS in Tanzania. It was also found that users of digital alternative delivery channels in the SACCOS had a good experience on services that are offered by digital alternative delivery channels efficiently. Customer satisfaction after the adoption of digital alternative delivery channels was found with significance (P-Value = 0.001). The adoption of digital alternative delivery channels proved normal variation with SACCOS operational performance and financial performance (p-value < 0.05). It is concluded that, the scope of adoption of digital alternative delivery channels is good, Digital alternative delivery channels user's experience is positive and the impacts of digital alternative delivery channels influences performance of SACCOS. It is recommended that the Tanzania Commission for Co-operative Development (TCDC) should formulate a way to assist small SACCOS to smoothly adopt these digital alternative delivery channels for operational efficiency of their SACCOS in Tanzania. It is recommended that SACCOS should maintain and ensure all customer disputes related to digital alternative delivery channels are attended on time; this will create more confidence in the users. In this regard, speed of services that are offered by digital alternative delivery channels should be kept to the higher side.