CROWD FUNDING SYSTEM AND FINANCIAL PERFORMANCE OF LISTED COMMERCIAL BANKS IN KENYA
Abstract
Globally, existing literature indicate conflicting relationships between banks innovativeness and banks’ performance, while other researchers merely report on bank innovations without relating the effectiveness of the purported innovations on bank performance. Therefore, lack of adequate empirical evidence on the relationship between emerging banks’ innovativeness and bank performance gave rise of this study. The objective of the study was to examine the effect crowd funding Systems on the Banks Financial Performance of listed commercial banks in Kenya. This research study adopted explanatory survey research design. The study targeted managers from listed commercial banks in Nairobi; Kenya. The study sample size was determined using Taro Yamane’s proportional sampling technique formula, which was drawn randomly from managers of commercial banks in Nairobi; 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 version 24) software. Descriptive statistics such as frequencies and percentages as well as measures of central tendency (means) and dispersion (standard deviation) were used. Data was organized into graphs and tables for easy reference. Further, inferential statistics such as regression and correlation analyses was computed to determine both the nature and the strength of the relationship between the dependent and independent variables. Both descriptive and inferential statistics showed that Crowd Funding System significantly influenced financial performance of listed commercial banks in Kenya. The study concluded that; commercial banks effectively utilize Crowd Funding systems since there is attraction of huge customer’s base, saving on transaction costs, thus boosting on bank’s financial performance. The study recommended that banks should adopt secure and cost effective Crowd Funding systems that can attract and retain a huge customer base. Further the study recommended for further study of similar variables using different methods.
Key words: Crowd Funding System, Financial Performance
CITATION: Ogada, S. O., Kadima, J. M., & Miroga, J.(2021). Crowd funding system and financial performance of listed commercial banks in Kenya. The Strategic Journal of Business & Change Management, 8 (4), 438 – 450.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i4.2114
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