Abstract:
The study topic was the impact of Financial Technology (Fintech) on the performance of Saving and Credit cooperative (SACCO) in Rwanda a case of Sacco TerimbereMushonyi. The objective of the study wereto assess the Impact of Financial Technology (Fintech) on the performance of Sacco TerimbereMushonyi,To identify the Operational challenges of Sacco TerimbereMushonyi face in the implementation of financial technology as well as the Strategies SACCO MUSHONYI should use for implementing financial technology. Literature review was guided by research objectives. The research design was descriptive. The total population were 258 but the study settled for 72 as sample size using Yamane formula. Tools for collecting data were questionnaires. Data was analyzed using tables, frequencies and percentages. Findings were in line with Objectives, objective one was looking at how Financial Technology (Fintech) impact the performance of Sacco TerimbereMushonyi, and it impact the performance of Sacco TerimbereMushonyi through:, Reducing operational costs, Making Sacco TerimbereMushonyi more competitive and Improving customer acquisition and retention , objective two was looking at the Operational challenges of Sacco TerimbereMushonyi face in the implementation financial technology and these challenges included Lack of adequate financial resources, High price of internet connection and Shortage of skilled ICT workers and objective three was looking at the Strategies Sacco TerimbereMushonyi should use for implementing financial technology and these included Sacco TerimbereMushonyi need technology managers with specific working knowledge of their businesses so that controls over both the information systems and the processes by which they are developed and maintained and other essential control procedures are designed, implemented, and assessed in close collaboration with those developing business strategy. The study concluded that FinTech component that significantly impacted on operational performance was internet banking which had a significant positive relationship with the operational performance, the use of internet banking is associated with various benefits which include; reduced costs of transacting business and some of the benefits accruing to bank customers include; reduced costs of opening and use of bank services. The study recommends that management of Sacco TerimbereMushonyi should adopt financial innovations such as ATMs, mobile, internet and agency banking. The study established that the use of financial digitalization increased accuracy and efficiency, reliability and speed which give them competitive advantage over the rest of the financial institutions
