The influence of digital processes on the performance of microfinance institutions in Cameroon

Purpose: This study was carried out to investigate the influence of digital processes on the performance of microfinance institutions in Cameroon. Four digital processes of microfinance institutions were involved in the analysis. These are process automation, mobile banking, online banking and loan tracking. The performance of microfinance institutions included the financial performance and the social performance of the institutions. Specifically, the study investigated how process automation, mobile banking, online banking and loan tracking influence the performance of microfinance institutions in Cameroon. 

Materials and Methods: The study adopted the survey research design and used primary data collected from 201 microfinance institutions in Cameroon through the administration of questionnaires. Data was analysed using both descriptive and inferential statistics with the help of SPSS Version 20, STATA Version 14 and AMOS Version 23. 

Findings: The results of the study revealed that process automation and mobile banking have significant positive influence on the performance of microfinance institutions in Cameroon while online banking and loan tracking have positive influence on the performance of microfinance institutions in Cameroon, though the positive influence was found to be insignificant. 

Conclusion and Recommendations: The study concludes that digital processes significantly influence the performance of microfinance institutions in Cameroon, with a 1 unit increase in the digital processes of microfinance institutions in Cameroon increasing the performance of the institutions by 3.317 units. To the microfinance institutions operating in Cameroon, the study recommends that more investment should be made on process automation and mobile banking technology in order to improve the performance of the institutions.