EXTENT OF INFORMATION MANAGEMENT ON EFFECTIVENESS OF DEBT COLLECTION IN COMMERCIAL BANKS.
DOI:
https://doi.org/10.47604/ijfa.328Keywords:
Information Management, Debt CollectionAbstract
Purpose: The study aimed to examine the extent of information management on effectiveness of debt collection in commercial banks.
Methodology: The research was carried out through descriptive survey design. The total population of the study was 1118credit managers/supervisors or branch managers of the 37 commercial banks. A sample size of 118 respondents was selected through random sampling technique, which represents a 10% of the population. The study used both secondary and primary data specifically the study used a questionnaire as the preferred data collection tool. The questionnaire had close ended questions only. Secondary data on the level of Nonperforming loans/Gross loans was also collected. This study used the quantitative method of data analysis. Quantitative methods of data analysis included inferential and descriptive statistics. Descriptive statistics included frequencies and measures of tendency mainly mean. Inferential statistics include correlation and regression analysis. The tool for data analysis was Statistical Package for Social Sciences (SPSS) version 20 program. The results were presented using tables and pie charts to give a clear picture of the research findings.
Results: Results also led to the conclusion that management information system of the bank has been crucial in assisting employees to enhance their performance and productivity. It was possible to conclude that that the relationship between information technology management and non-performing loans is negative and significant. The findings imply that information technology has significant negative effect on non-performing loans.
Policy recommendation: it is recommended that staff competence be emphasized in the banks as it has an effect on the overall achievement of effective debt collection practices. Therefore the management is urged to encourage sharing of potentially sensitive information on costs, quality, and productivity on financial performance with other employees.
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