DIGITAL FINANCE PLATFORM ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA
Abstract
The purpose of the study was to investigate the effect of digital finance platform on financial performance of commercial banks in Mombasa County. The study adopted cross-sectional descriptive survey research design. The target population was Standard Chartered bank, Equity Bank, KCB Bank, Sidian Bank, Bank of India, Bank of Baroda and I&M Bank which were feted as the best banks in digital and service efficient banks. Thus the unit of observation was the seven commercial banks which received the Think Business Banking Award in 2021 in Mombasa County. The study employed stratified and purposive sampling to select the respondents for the study. The Cochran’s formula was used to calculate a representative sample 83 respondents. Two sets of data was collected, that is, primary and secondary data. Consequently, two instruments were used to collect the stated data. These were a research questionnaire and a secondary data collection sheet respectively. Pilot test was conducted on data collection tools to establish validity and reliability. On data analysis, descriptive statistics and inferential statistics was employed to analyze collected data. Statistical Package for Social Science (SPSS) was the data analysis tool. Analyzed data was presented by use of frequency and descriptive tables. The findings indicated that the bank has expanded point of sale terminals in all populated urban areas enabling accessibility and it has provided adequate security around the point of sale terminals. The results also showed that the point of sale terminals are available whenever needed hence reliable and the bank has enhanced 2 step authentication on all transactions thus protecting customer data. The bank has expanded point of sale terminals in all populated urban areas enabling accessibility. Regression results revealed that point of sale terminals, mobile wallets, internet banking and automated money machines has significant positive effect on financial performance of commercial banks. The study concludes that the bank banking apps are downloadable for free and the mobile wallet for the bank is easy to install and use. The study concludes that the bank’s mobile wallet allows customers to use the services while offline. Also mobile wallets provides capability to customer of retrieving transactions statements. The study recommends that the management of commercial banks should build presence in the internet by providing internet based banking services. This would make the banks’ services accessible throughout by a wider majority of customers anywhere.
Key Words: Point of Sale Terminals, Internet Banking, Mobile Wallets, Automated Money Machine
CITATION: Mageto, N. K., & Wekesa, M. (2023). Digital finance platform on financial performance of commercial banks in Kenya. The Strategic Journal of Business & Change Management, 10 (2), 1104 – 1121.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i2.2653
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