INFLUENCE OF BANK INNOVATIVE SYSTEMS ON PROFITABILITY OF LISTED COMMERCIAL BANKS IN KENYA
Abstract
This study examined the influence on innovative systems on profitability of listed commercial banks in Kenya. The study examined the influence of crowd funding, artificial intelligence predictive banking system and payment innovations on profitability of listed commercial banks in Kenya. The research adopted explanatory survey research design. The study targeted managers from listed commercial banks headquarters in Nairobi city county, Kenya. Primary data was collected by means of self-administered questionnaires. Data collected from the field was coded, cleaned, tabulated and analyzed using both descriptive and inferential statistics with the aid of specialized Statistical Package for Social Sciences (SPSS) software. The output of analysis was presented using tables to make them reader friendly. Descriptive statistics such as frequencies and percentages as well as measures of central tendency (means) and dispersion (standard deviation) was used. Data was organized into graphs and tables for easy reference. Further, inferential statistics such as regression and correlation analyses was used to determine both the nature and the strength of the relationship between the dependent and independent variables. Both descriptive and inferential statistics showed that all study’s independent variables (payment innovations, crowd funding, Artificial intelligence predictive banking) significantly influenced profitability of listed commercial banks in Kenya. The results further revealed that there was significant difference in profitability before and after introduction of bank innovative systems. The study concluded that one, commercial banks that efficiently adopt cost effective electronic payment innovations can enhance their profitability. Two, commercial banks that facilitate their customers access crowd funding platforms can attract a huge customer base and benefit from financial transactions of customers who secure their business transactions using the bank. The study recommended that innovators in commercial banks should adopt secure and cost effective payment innovations systems that can attract and retain a huge customer base; and that innovators in commercial banks should roll out secure and upgraded artificial intelligence predictive banking innovations meant to win customer trust and boost their profitability.
Key Words: Crowd Funding, Artificial Intelligence, Predictive Banking System, Payment Innovations
CITATION: Kinoti, M. M., & Otinga, H. N. (2020). Influence of bank innovative systems on profitability of listed commercial banks in Kenya. The Strategic Journal of Business & Change Management, 7 (4), 1260 – 1275.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i4.1859
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