Factors Affecting Digital Financial Services Of Micro-Finance Institutions In Case Of Ambo Town

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.