Effects Of Mobile Banking On The Financial Performance Of Commercial Banks In Kenya

Abstract

This study sought to determine the effects of mobile banking on the financial performance of commercial banks. This study used a descriptive research design of the registered commercial banks in Kenya. Purposive sampling was employed to select the main commercial banks engaging in mobile banking and thus focused on 8 commercial banks in Kenya. The study only used secondary data which was collected from financial statements of the commercial banks. Data was analysed using descriptive and regression analysis. The results reveal that the number of mobile banking transactions, capital adequacy, markets share and the size of the assets had a positive influence on the financial performance of commercial banks. The study concludes that the adoption of mobile banking by commercial banks in Kenya has resulted in improved performance over the years. The study recommends that commercial banks should increase their focus and investments in mobile banking as this is the future of the banking industry in order for them to remain profitable