Mobile Banking and Financial Performance of Tier One Commercial Banks in Kenya
| dc.contributor.author | Mwaura, Samuel Njogu | |
| dc.date.accessioned | 2025-02-13T08:03:42Z | |
| dc.date.available | 2025-02-13T08:03:42Z | |
| dc.date.issued | 2024-03 | |
| dc.description | A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirement for the Award of Degree in Master of Business Administration (Finance Option) of Kenyatta University, March 2024. Supervisor Daniel Makori | |
| dc.description.abstract | Lately, the level of profitability in commercial banks has declined due to the rapid competition and change in technology for example mobile banking and so on. In addition, the banking sector in Kenya has been affected by challenges of liquidity right from finance to market hazards in specific banks. This has led to many banks being placed under receivership in the recent past. Focusing on the contextual data, mobile banking is an essential advancement in the contemporary commerce environment. Though its advantages are many unlike several commercial banks, the level to which it is sufficiently applied is quite concerning. The research investigated the influence of mobile financial transactions on performance of the Kenyan commercial bank institutions. The study's specific objectives are as follows: to determine1the impact of mobile banking1transactions1volume on the financial1performance of Tier 1 commercial banks1in1Kenya; and determine the impact of mobile banking products on the financial performance of tier-one commercial1banks in Kenya. The study used a descriptive research strategy, thereby obtaining measurable data on the financial performance of profit-making banks and the use of mobile banking services. The study utilized secondary data in answering the research objectives proposed. The study adopted a census of all tier one banks. Data analysis was done by using descriptive statistics which included percentages, means and standard deviation. Data analysis also includes regression analysis and diagnostic testing. Specific diagnostic tests include: normality, multicollinearity, stationarity, heteroskedasticity, autocorrelation, and Hausman tests. Further, regression model was used to show if there is any relationship of the research variables. Diagnostic tests were conducted to assess the suitability and reliability of the models used for data analysis. The Shapiro–Wilk test confirmed the normalcy of data for the dependent variable. VIF analysis revealed no significant multicollinearity among the independent variables. The Dickey-Fuller test indicated all variables are stationary, ensuring reliability for analysis. The Breusch Pagan Test showed homoscedasticity exists, while the Durbin-Watson test found no autocorrelation among variables. Lastly, the Hausman test results recommended using the fixed-effects estimator over the random-effects model for the three variables. The results of the study confirm that the financial performance of tier-one commercial banks is significantly affected by the adoption of mobile banking services. Precisely, mobile banking products were found to be significant at β =0.350, p value = 0.010 in influencing bank financial performance. The cost of mobile banking transactions was also found to be positively significant β = 0.507, p value = 0.000 for financial performance. There was a positive and significant effect of mobile banking transaction volume β=0.233, p value=0.054 to financial performance of tier one commercial banks in Kenya. The results have also indicated that mobile banking is an emerging trend in which case commercial banks are utilizing it as a competitive strategy. The study offered recommendations that can be adopted by tier one banks in R&D, customer education and awareness creation and identifying emerging customer needs for more adoption of mobile banking for enhanced financial performance. In addition, the study made suggestions that can be utilized by future studies. | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/29575 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Mobile Banking and Financial Performance of Tier One Commercial Banks in Kenya | |
| dc.type | Thesis |