Provision Of Financial Services and Performance Management Practices of Express Savings and Credit Cooperative Limited, Kireka,W Akiso,Uganda

Abstract

Express SACCO Ltd is a member-owned and controlled Savings and Credit Cooperatives Society. It offers a diversity of financial services which include loaning to members [ emergency loans, commercial loans, school fees loans, and agricultural loans], savings and credit facilities, front office services, and risk management. Reports from the Ministry of Trade, Industry and Cooperative [Cooperative Department] the SACCO census of 2011 indicated that membership at Express SACCO was declining and the concerns raised by clients were; delay in the loan disbursal, no ATM services, no Automated bill payments, and inadequate credit facilities. If this trend continued, it could impair the financial position of the SACCO, cause redundancy of employees and suffering of clients. The main objective of the study was to assess the effect of Performance Management Practices on the Provision of Financial Services by Express SACCO Ltd. The study adopted a descriptive research design. The target population comprised of 2220 members of the SACCO. The study used stratified and random sampling criteria to obtain a sample of 333 respondents. Semi-structured questionnaires were used to collect both quantitative data and qualitative data. Data were analyzed using descriptive statistics such as frequencies and percentages. Regression analysis and Pearson Correlation were used to establish the strength, direction and significance of the relationship between performance management practices and the provision of financial services. Data were presented using tables and charts. The study revealed that generally, clients were not satisfied with the way the SACCO offered its loans that is, poor utilization of the new technology like mobile banking and ATM services. However, there was a positive relationship between PMP and PFS with a unit change to PMP carrying an 84.9% increase in PFS. The study concluded that SACCO management should put specialization into practice for efficiency and effectiveness. These research findings can provide useful knowledge to academicians, researchers, and SACCOs to improve their management practices.