How Perceived Usefulness of Mobile Banking Affects Financial Performance of Commercial Banks in Nairobi City, Kenya
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Date
2024-07-24
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Journal International of Business Management
Abstract
he shift from traditional branch banking to mobile banking has seen banks employ mobile banking. Use of
mobile banking seeks to attract new customers while retaining existing ones minimize operational and
management costs and sustaining competition. The Kenyan banking sector has seen significant advances in
technology, but investment in technology is expensive and still not monetized to contribute to financial
performance outcomes. This study sought to assess how perceived usefulness (PU) on mobile banking affected
the financial performance of commercial banks in Nairobi County, Kenya. The study was anchored on
technology acceptance model (TAM). The survey was based on descriptive research design and targeted 200
customers from the top-five rated banks on performance of mobile banking. The sample size was 133 after
applying the Yamane formula and these respondents filled the questionnaire. The quantitative data was
analyzed using descriptive, correlation and regression analysis. The descriptive analysis results show that
perceived usefulness had mean score of (M=3.94) and financial performance (M=4.191). The correlation
analysis show that perceived usefulness was closely associated to financial performance as r = 0.699 and the
two variables were positively and significantly related based on regression beta coefficient of β=.545. The
findings showed that 62.9% of financial performance was influenced by perceived usefulness of mobile
banking application. The study concluded that financial performance with aspects like increased customer
numbers, profit margins and cash flows was improved by perceived usefulness of mobile banking. The study
recommended upgrading of the mobile banking apps so as to perform services such as financial transactions,
speedy processing of transactions and provide multiple services to users
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Citation
Munyasia, R. N., & Waithaka, S. T. (2024). How perceived usefulness of mobile banking affects financial performance of commercial banks in Nairobi City, Kenya. Reviewed Journal International of Business Management, 5 (1), 551 – 559. https://doi.org/10.61426/business.v5i1.277