Assessing the factors affecting the integration of Financial Technology (FinTech) solutions in the operations of microfinance institutions in Uganda: a case study of Vision Fund Uganda Limited

Abstract

The study was to examine the factors influencing the integration of Fintech solutions in the operations of Microfinance Institutions in Uganda using a case study of Vision Fund Uganda Limited. It was guided by three objectives which included determining the drivers of integration of Fintech solutions in the operations of Vision Fund Uganda Limited, to assess the challenges faced by Vision Fund Uganda Limited while integrating Fintech into their operations and to recommend strategies for enhancing successful integration of Fintech solutions into the operations of Vision Fund Uganda Limited. The study employed a crosssectional and descriptive research design with a mixed study approach, which involved collecting both quantitative data from 69 respondents out of a sample of 86 regular employees using a survey questionnaire and interviewing 5 out of 10 heads of department at Vision Fund Uganda. Data were analyzed using the statistical package for social science (SSPS Version 23) for quantitative data and Atlas Ti Version 9.2 for qualitative data. According to the study findings, greater financial inclusion was the most outstanding driver for the integration of fintech solutions, followed by streamlining operations, and others included improving data analytics, leveraging mobile banking and digital payment solutions, meeting rising customer expectations, enhancing financial accessibility through digital platforms, the desire to enhance operational efficiency through technological advancements, and improving data security and privacy concerns. Among the challenges for integration of Fintech solutions are the cost of technological infrastructure and investment being the most outstanding challenge, followed by Llw digital literacy and limited accessibility among stakeholders, and others include managing risks associated with Fintech stakeholders, difficulty in ensuring data security and privacy, the complex regulatory landscape in the financial and technology sectors, difficulty in adapting to the fast-paced advancements, and difficulty in coordinating and integrating various Fintech solutions. Among the strategies, comprehensive needs were the most significant, followed by assessment and goals, with other strategies including collaborative partnerships, vendor selection, customization planning, staff training, and change management. Therefore, the study recommended that there is a need for collaboration between governments, financial institutions, and technology companies to establish funds or grants dedicated to supporting technology integration, to advocate for clear and adaptable regulatory frameworks that accommodate the rapidly evolving nature of fintech, and to develop and implement educational programs aimed at improving digital literacy, targeting not only end-users but also stakeholders involved in the fintech integration process