Influence of financial literacy training on financial performance of women self help groups: a case of equity bank customers, Isiolo branch, Kenya

Abstract

This study was set out to assess the extent to which training on financial literacy influenced financial performance of women self help group customers in Equity Bank, Isiolo Branch. The combined impact of globalization that comprises of changing patterns of trade and evolving technologies calls for financial skills that women entrepreneurs in the African continent does not for a large extent possess, as many more women than men in Africa lack the requisite level of education, business training, financial literacy skills and entrepreneurship training. In deed women in many Sub-Saharan countries display lower financial skills than men, are less confident about their financial knowledge and skills while not enough research has been done on the influence of financial literacy training on financial performance of women self help groups. The aim of this study was to determine the influence financial literacy on financial performance of women self help group customers in Equity Bank, Isiolo Branch. The study was founded on four objectives as follow: to establish how training on budgeting skills influence financial performance of women self help group customers in equity bank, Isiolo Branch, to determine how training on saving skills influence financial performance of women self help group customers in equity bank, Isiolo branch, to assess how training on bank’s products and services influence financial performance of women self help group customers in equity bank, Isiolo branch, to assess how training on debt management influence financial performance of women self help groups customers in equity bank, Isiolo branch. Quantitative and qualitative data was collected through a descriptive survey on how training on budgeting skills, saving skills, debt management skills and on bank products and services influenced financial performance of women self help group customers in Equity Bank, Isiolo Branch. Questionnaire and structured focused group discussions were used as data collection instruments. Data analysis was done using descriptive statistics and inferential statistics. The study established that majority 55(79.7%) of groups were keeping a written budget after the training, majority 57(82.6%) indicated that their groups were borrowing for investment, majority 51(73.9%) indicated that training on debt management impacted very strongly on the general group loan graduation while 43(62.3%) indicated that training on debt management skill was extremely important to their group. The finding further revealed that majority 43(62.3%) of group officials and credit committee strongly agreed that the group was using alternative banking channels to access bank services as a result of knowledge they acquired through training. The study also revealed that 69(100.0%) of group officials and credit committee indicated they were saving after the training, 65(94.2%) group official and committee indicated that their groups saved to create security against which they borrowed while 45(65.2%) of group official indicated that training on saving was extremely important. The study recommends that government agencies and financial institutions should focus on training budgeting skill to all the adult in Kenya irrespective of their gender in order to enhance sustainability in the utilization of the available household resources, that financial institutions in Kenya should launch saving skills training programs and saving loyalty programs for all their customers irrespective of the age or gender