Mobile Banking Services with Financial Performance on Commercial Banks in Kenya
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Date
2019
Authors
Mugane, Maurine
Njuguna, Reuben
Journal Title
Journal ISSN
Volume Title
Publisher
IJCAB Publishing Group
Abstract
The competition dimensions have changed following the adopting of various internet banking
services that came about as a result of technological innovations such as the introduction of
Automated Teller Machines (ATMs), phone banking Personal computer banking which were
some of the first innovations of electronic finance. The main objective of this study was to
establish the impact of mobile banking services on the financial performance of commercial
banks in Kenya. The specific objectives guiding this study included to assess the influence of
short message service (SMS) banking on the financial performance of commercial banks in
Kenya, to establish the effect of person to person payments on the financial performance of
commercial banks in Kenya, to determine the effect of bill payments on the financial
performance of commercial banks in Kenya and to find out the effect of airtime top up service on
the financial performance of commercial banks in Kenya. The research design that the study
adopted was a descriptive research design employing quantitative research strategies. In this
study the target population under investigation was all the 40 commercial banks in Kenya. Since
in the current study the target population was 80 participants from all the 40 commercial banks
in Kenya a census inquiry method was the best method used. Primary data for this study was
collected through the use of a questionnaire that was given senior managers from all the
departments of these organizations. Both quantitative and qualitative data was generated in this
study. Qualitative data was analysed using content analysis whereby content of responses was
looked at and responses were grouped together in relation to common patterns or themes for
coherent categorization. Descriptive statistics included measures of central tendency and
dispersion thus standard deviation and mean and use of absolute and relative percentage
frequencies. Presentation of quantitative data was in form of graphs and tables and explanation
given in prose. The study findings show that short message service had an above average
positive correlation with financial performance of commercial banks and was statistically
significant. Person to person had an average correlation with financial performance of
commercial banks and was statistically significant. Bill payments had a strong positive
correlation with financial performance of commercial banks and was statistically significant.
Airtime top up service had an strong positive correlation with financial performance of
commercial banks and was statistically significant. The study concludes that short message
service banking has become and important part of banking, more and more people prefer to
receive banking alerts through short message service which has not only improved service
delivery but has had a positive impact on financial performance. Commercial banks have
experiences large revenues from different activities with the banking system core among them
the bill payments activities. The study recommends that it is important for commercial banks to
focus more on short message service banking to lower operational costs thereby improving
financial performance. Commercial banks need to consider using person to person payments to
improve on their performance, they need to enhance their bill payments to get more clients
paying bills using their systems so as to improve on their financial performance and that it is important for commercial banks to put more effort on airtime top up service so as to improve on
their financial performance.
Description
An Article Published in International Journal of Current Aspects
Keywords
Mobile Banking Services, Short Message Service, Person To Person Payments, Bill Payments, Airtime Top Up Service, Performance of Commercial Banks in Kenya
Citation
Mugane, M., & Njuguna, R. (2019). Mobile Banking Services with Financial Performance on Commercial Banks in Kenya. International Journal of Current Aspects, 3(VI), 176-192. https://doi.org/10.35942/ijcab.v3iVI.84