CROWD FUNDING SYSTEM AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN NAKURU COUNTY, KENYA
Abstract
Existing literature indicates contradicting correlations between banks innovativeness and banks’ performance, conceptually some researches merely report on bank innovations without relating the effectiveness and efficiency of the purported innovations on bank performance. The study was anchored on Innovation Diffusion theory, Schumpeter theory of innovation and Technology Acceptance Model. Lack of sufficient empirical evidence on the relationship between emerging banks’ innovativeness and bank profitability motivated this study to be undertaken. The objective of the study was to determine the effect of crowd funding system on financial performance of commercial banks in Nakuru County, Kenya. The research adopted descriptive survey research design. The study targeted managers from commercial banks in Nakuru County, 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 Nakuru, 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) 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 significantly influenced financial performance of commercial banks in Nakuru County, Kenya. The study concluded that commercial banks to effectively utilize crowd funding system practices to boost bank’s financial performance. Commercial banks to enable their customers access crowd funding platforms to attract a huge customer base and benefit from financial transactions of customers who secure their business transactions using the bank.
Key words: Bank Innovations, Crowd Funding System, Financial Performance
CITATION: Siminyu, N. A., & Kadima, M. J. (2025). Crowd funding system and financial performance of commercial banks in Nakuru County, Kenya. The Strategic Journal of Business & Change Management, 12 (2), 1194 – 1206. http://dx.doi.org/10.61426/sjbcm.v12i2.3265
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3265
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