MOBILE BANKING AND FINANCIAL PERFORMANCE OF TIER ONE COMMERCIAL BANKS IN KENYA
Abstract
The research investigated the influence of mobile financial transactions on performance of the Kenyan commercial bank institutions. The study's specific objectives are as follows: to determine the impact of mobile banking transactions, volume and products on the financial performance of Tier 1 commercial banks in Kenya. The study used a descriptive research strategy. The study utilized secondary data in answering the research objectives proposed. The study adopted a census of all tier one banks. Data analysis was done by using descriptive statistics which included percentages, means and standard deviation. Data analysis also includes regression analysis and diagnostic testing. The results of the study confirm that the financial performance of tier-one commercial banks is significantly affected by the adoption of mobile banking services. Precisely, mobile banking products were found to be significant at β =0.350, p- value = 0.010 in influencing bank financial performance. The cost of mobile banking transactions was also found to be positively significant β = 0.507, p value = 0.000 for financial performance. There was a positive and significant effect of mobile banking transaction volume β=0.233, p- value=0.054 to financial performance of tier one commercial banks in Kenya. The results have also indicated that mobile banking is an emerging trend in which case commercial banks are utilizing it as a competitive strategy. The study offered recommendations that can be adopted by tier one banks in R&D, customer education and awareness creation and identifying emerging customer needs for more adoption of mobile banking for enhanced financial performance. In addition, the study made suggestions that can be utilized by future studies.
Key words: Mobile Banking, Transaction costs, Transaction Volume, Mobile Banking Products
CITATION: Mwaura, S. N., & Makori, D. (2024). Mobile banking and financial performance of tier one commercial banks in Kenya. The Strategic Journal of Business & Change Management, 11 (4), 738 – 758. . http://dx.doi.Org/10.61426/Sjbcm.v11i4.3116
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i4.3116
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