Effect of digital financial services on financial performance of rotating, savings and credit associations in Mombasa County

The effect of digital financial services on financial performance includes the introduction of new financial instruments and services as well as the introduction of new sources of funding. Access to financial services is the key limitation impacting Kenyan informal finance organisations. Although informal finance services are accessible, the quantity supplied is insufficient to achieve the goals of the informal finance groups thus hindering financial performance. Despite the government's efforts to encourage borrowing from the official sector, informal financing remains popular among small traders. Due to their insufficient records, seek modest loan sizes, and lack collateral, several banks find it difficult to assess informal financial groupings for loans. The research objective was to determining the effect of digital financial services on financial performance of RoSCAs in Mombasa County. A descriptive survey technique was used to conduct out in-depth investigations by the researchers in order to accomplish the study's goals. The results showed that the respondents strongly agreed with a mean of 4.52 and a standard deviation of 0.723 that digital payment has enabled effective and efficient running of the operations and reduced fraud in the RoSCAs. Findings revealed that the coefficient of determination (R-Square) was 0.715 i.e. R2 = 0.511. The study concluded that digital payment has enabled ROSCAs to be flexible and change with the dynamic environment for convenient payment.