Financial Technology, Bank Size and Financial Performance of Commercial Banks in Kenya
| dc.contributor.author | Muttai, Susan | |
| dc.date.accessioned | 2024-09-26T12:33:46Z | |
| dc.date.available | 2024-09-26T12:33:46Z | |
| dc.date.issued | 2024-05 | |
| dc.description | A Thesis Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of Degree of Master of Science in Finance of Kenyatta University, May 2024 Supervisors: 1.Charity Njoka 2.Bancy Muchira | |
| dc.description.abstract | Performance of commercial bank is an essential component in the study of finance. A number of studies in the field of finance have been dedicated to the purpose of unraveling the enigma of why the performance of two companies that are operating in the same environment may be so drastically different from one another. Over the last decade, Kenya's commercial banks have increased their use of different types of financial technology (2011-2021). Mobile banking, agency banking, internet banking, and automated teller machines are just some of the various forms of financial technology available today. There are a number of fundamental issues that need to be researched before commercial banks can confidently integrate new types of financial technology into their business operations. There are a number of issues that customers have with mobile banking, including the price, security, speed, and expertise needed. The purpose of this study was to evaluate the effect that financial technology has had, if any, on the overall financial performance of commercial banks in Kenya. The specific goals were as follows: to establish the effect of mobile banking on financial performance; to determine the effect of internet banking on financial performance; to determine the effect of agency banking on financial performance; to determine the effect of ATMs on financial performance; and to establish the moderating role of bank size on the relationship between financial technology and the financial performance of commercial banks. The research was predicated on four different theoretical frameworks: the technological adoption model, the financial intermediation theory, the diffusion of innovation theory, and the profit maximization theory. The positivist research philosophy was used for this study, and a panel longitudinal research methodology was used for the research. The population of the study was 38 commercial banks as at December 2021. The study was a census. Secondary information was gathered on an annual basis, and it covered a span of ten years (January 2012 to December 2021). The data was evaluated making use of descriptive statistics as well as inferential statistics entailing correlation and panel multiple linear regression analysis. The current research conclusions revealed that financial technology fairly explains financial performance and the current research discoveries also revealed that the financial technology is sufficient in predicting financial performance. Additional study findings were that mobile banking, internet banking, agency banking, adoption of ATMs, and bank size had positive significant correlations with financial performance. Moreover, findings were that adoption of ATMs and mobile banking had a significant positive link with financial performance. Meanwhile, agency banking and internet banking had a positive insignificant relationship with financial performance. Finally, bank size was found to have a significant moderating effect on agency banking, mobile banking and ATM banking. For practice, banks should invest in expanding and optimizing financial technology to enhance customer convenience and operational efficiency. Ensuring financial technology reliability and accessibility can improve customer satisfaction. For policy, regulators should promote financial technology infrastructure development and interoperability to facilitate widespread access to banking services. | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/28905 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Financial Technology, Bank Size and Financial Performance of Commercial Banks in Kenya | |
| dc.type | Thesis |