Financial Innovations and Financial Performance of Commercial Banks
Kurgat, David Kiplangat
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Advances in innovation and changing financial conditions have made driving force for this change. Because of serious global rivalry, divided and requesting markets and the quickly evolving advances, developments have turned out to be a standout amongst the most important elements for business banks. The present investigation was prompted by the present difficulties in the managing an account division. With the closure of Imperial Bank and Chase bank in Kenya being put under receivership, it was clear that were not challenges in the saving money division and Central Bank of Kenya should take measures to protect customers from future misfortunes. The principle goal of this investigation was established the influence of financial innovations on the financial performance of commercial banks in Kenya. Causal research design was used to complete this investigation. The objective population for this study included 215 workers of business banks in Kenya. The sample estimate was 170 respondents that was collected using stratified random sampling. Inferential statistics was used to produce the results. The findings indicated that innovation significantly affected financial performance. The highest direct contributor come from mobile banking based on the levy and charges used and its convenience. Online banking, EFT and agency banking were not significant predictors but was indirectly like to financial growth in liquidity aspect. It provided more customer base as well as open new untouched market. The research recommended that agency and online banking should be exploited further as a potential area for more financial performance this can be done through introduction of mobile operated applications. Further research should also be done in the two areas.