DIGITAL BANKING AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KISII COUNTY
Abstract
In Kisii County, Commercial banks have persistently sanctioned new banking innovation products for the financial services sector, influenced by evolving customer demands, novel financial products, technological progress, and the utilization of diverse distribution channels. Banks maintain competitiveness in distinct circumstances and adapt to the environment by introducing new goods, expanding existing offerings, and incorporating additional distribution channels. The study was anchored on theories namely; Schumpeter theory of innovation, Transaction theory of innovation, Circumvention theory of innovation and the theory of reasoned action. The study mainly sought to assess the influence of digital banking on financial performance of commercial banks in Kisii County. The study adopted descriptive correlational research design. The study targeted twenty-two (22) commercial banks which operates within Kisii County. The unit of analysis was 22 commercial banks and unit of observation was operation managers. CBK's annual banking report was the primary source document for secondary data. The study results indicated that there was a positive and significant relationship of digital banking and performance of commercial banks. The study recommends that the management of commercial banks in Kenya collaborate with digital service providers to foster synergy in extending and expediting the adoption of digital banking, ultimately enhancing financial performance.
Key Words; Digital Banking, Technological Innovations and Financial Performance
CITATION: Nyauma, V., Nyile, E., & Miroga, J. (2024). Digital banking and financial performance of commercial banks in kisii county. The Strategic Journal of Business & Change Management, 11 (4), 443 – 453. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3097
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i4.3097
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