This study sought to establish the effect of mobile credit on operational efficiency\nin commercial banks in Kenya. The study utilized primary as well as\nsecondary data on access to mobile credit and its effects on the performance\nof the organization. A questionnaire was the primary data collection tool and\ncomposed of open ended and closed ended questions. Data collected was\nanalyzed using multiple linear regression analysis at a 95% confidence interval.\nAnalyzed data was presented using tables and figures for ease of interpretation.\nOperational efficiency is the goal of any manager in a customer service\ndriven sector. Some of the strategies to achieve operational efficiency include\nmanagerial behavior change, promoting operational optimization and use of\ntechnology. Mobile credit introduction improved operational efficiency in\ncommercial banks. Mobile credit introduction enhanced operational efficiency\nin loans collection, returns on shareholders. The operational efficiency\nperformance indicators utilized in this study were: return on assets, earnings\nper share and proportion of non-performing loans. On the other hand, proportion\nof non-performing loans declined after the introduction of mobile\ncredit indicating increased operational efficiency in debt collection. The introduction\nof mobile credit significantly enhanced organization efficiency as\nmeasured by metrics such by brand image building, ability to adapt to market\nchanges and perceptions of reliability in the customerâ??s mind. Mobile credit\nintroduction improved operational efficiency in commercial banks. Mobile\ncredit introduction enhanced operational efficiency in loans collection, returns\non shareholders. Overall, it has been accepted that the use of technology\nis one of the major strategies used to enhance operational efficiency. The\nfindings of this study propose that the use of mobile credit has enhanced debt\ncollection efficiency and revenue generation efficiency.
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