Abstract:
This study was conducted in Ambo town to identify the factors affecting digital
financial services of Micro financial services. The purposes of this study were to
examine the trends of digital financial services, to evaluate factors related digital
financial infrastructure and employees related factors affecting digital financial
services of Micro finance institutions in the study area. Descriptive and explanatory
and mixed (quantitative and qualitative) research design and approach were employed
respectively. Primary and secondary data were collected from 114 respondents
through questionnaire and interviews were analyzed by using statistical package for
social science version 26. The multiple linear regression results indicated that Level of
education, work experience, Percevied usefulness, Access to devices, Access to network
and customer awareness have positive relationship with digital financial services but
negative with cost of digital finance services. Researcher forwarded recommendations
of Micro finance institutions should improve digital infrastructure, particularly in
rural and build consumer awareness and trust in digital financial services through
educating and training. Additionally collaboration have to make with stakeholders like
telecommunications companies, and technology providers, is essential for increasing
and expanding the range of digital financial services of micro finance institutions.
