Mobile Banking Capability and Performance of Commercial Banks in Nairobi County, Kenya
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Date
2021
Authors
Chemnjor, Benard Kipchirchir
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Three major commercial banks collapsed in 2015 and 2016 due to capital shortages, and CBK
put them under liquidation and receivership in less than two years, demonstrating the country's
commercial banks' poor performance.
A well performing commercial banking sector is critical in the absorption of financial crises in
the economy hence strengthening the economic system of the country. The foregoing has
provided an impetus for commercial banks in the country to adopt competitive strategies that
aim at growing their customer bases for improved financial performance, key among which,
mobile banking. Pertinent empirical literature in the Kenyan context however lacks, on how
security of transactions, transactional costs, efficiency of transactions and operational
competencies in m-banking influence financial outcomes among banks in Kenya in regards of
ROA and ROI, As a result, the current research. The aim of the research was to determine the
impact of mobile banking on the performance of Kenyan commercial banks. The population
studied was the 42 commercial banks that operated in the country, and the method used was
descriptive design, which formed the units of analysis, from which a sample size of 84 bank
managers was formulated by using purposive sampling design. The units of observation included
business development managers, ICT managers, operations managers and marketing managers
in the respective banks. Primary data was employed and it was gathered by use of semi-structured
questionnaires. The study used descriptive and inferential analyses. Findings indicated that
transactional security did not a have significant effect banking using mobile phones and banks
performance in Kenya. However, it was discovered that transactional costs in mobile banking
had a huge impact on bank performance in Kenya. Transactional efficiency in m-banking has
also been found to have an impact on Kenyan banks' success. Customer operational competency
in mobile banking had a substantial impact on bank success in Kenya, according to the report.
The findings are expected to educate bank managers and policymakers on how to boost Kenya's
banks' efficiency by leveraging mobile banking capability
Description
A Research Project Report Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of Master of Business Administration (Management Information System) of Kenyatta University, April, 2021
Keywords
Mobile Banking Capability, Performance, Commercial Banks, Nairobi County, Kenya