Performance Analysis of Debit Card Services on Deposit-Taking SACCOs’ Financial Performance: A Case of Kenya

Abstract

The Co-operative Bank of Kenya has partnered with Deposit-Taking Savings and Credit Cooperative Societies (SACCOs) in Kenya to allow their members access to Co-operative Bank automated teller machines (ATMs) via Saccolink debit cards. However, the adoption and utilization of debit cards has opened financial institutions to fraud associated with the use of debit cards for transactions on automated teller machines and point-of-sale terminals. Given this limitation, this study sought to investigate the effect of Saccolink debit card services on the financial performance of Deposit-Taking SACCOs in Kenya. Through a combination of agency, information systems success models, and task-technology fit theories to explain financial performance, the study found a positive effect of Saccolink debit card services on the financial performance of Deposit-Taking SACCOs in Kenya. The study therefore recommends continued utilization of Saccolink debit cards and an enhancement of their features within the Deposit-Taking SACCOs in Kenya.