Adoption of Financial Innovations by Tier One Commercial Banks and Financial Deepening in Kenya

Simple item page
dc.contributor.authorWinga, E.
dc.contributor.authorNdede, F.
dc.date.accessioned2022-05-09T10:58:11Z
dc.date.available2022-05-09T10:58:11Z
dc.date.issued2021-06-19
dc.descriptionA Research Article in the Strategic Journal of Business & Change Managementen_US
dc.description.abstractIt is envisaged that by 2030 Kenya will realize the three pillars of success that is social, economic and political development. These pillars are not likely to be achieved if the country adopts same way of doing things, thus innovations in all sector is vital. Innovation accelerates growth in all the three pillars and more so economy. Although bank innovations are of convincing importance when checked in terms of financial performance, the effect created by the innovation on financial deepening is still not clear. The general objective of the study was to establish the effect of the adoption of financial innovations by tier one commercial banks and financial deepening in Kenya. Specifically, the study sought to establish mobile, agency, automated teller machine and internet banking on financial deepening in Kenya. The study was based on diffusion theory of innovation and theory of financial deepening. The study adopted correlation research design. In the current study the target population composed of 6 banks in tier one. Census approach was used to select 6 tier one commercial banks from 2010 to 2018. Data was analysed using descriptive statistics, correlation analysis and multiple regression analysis with the aid of STATA 12. The regression coefficients were tested for significance using tstatistics at 5% confidence level. Diagnostic tests that conducted include auto correlation, multicollinearity, heteroscedasticity, fixed and random effects and normality. The study findings found that commercial banks in tier one had an average financial deepening of 16.61. Regression analysis revealed that mobile banking, agency banking, automatic teller banking and internet banking have positive and significant effect on financial deepening of tier one commercial banks in Kenya. There is need to take advantage of agency banking services especially in regions which have low mobile phone penetration and adopt agency banking services owing to proximity to banking agents. Data security should be provided to enhance authorization procedure when using automatic teller machines banking services.en_US
dc.identifier.citationWinga, E., & Ndede, F. (2021). Adoption of financial innovations by tier one commercial banks and financial deepening in Kenya. The Strategic Journal of Business & Change Management, 8 (2), 566 – 576.en_US
dc.identifier.issn2312-9492
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/23709
dc.language.isoenen_US
dc.publisherStrategic Journalsen_US
dc.subjectFinancial Innovationsen_US
dc.subjectCommercial Banksen_US
dc.subjectFinancial Deepeningen_US
dc.subjectKenyaen_US
dc.titleAdoption of Financial Innovations by Tier One Commercial Banks and Financial Deepening in Kenyaen_US
dc.typeArticleen_US
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Adoption of Financial.....pdf
Size:
645.82 KB
Format:
Adobe Portable Document Format
Description:
Research article
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
RP-Accounting and Finance Department