dc.description.abstract | Due to increased competition in the banking industry and consumer preference for convenience, banks have embraced mobile banking to stay competitive. However, it has not been empirically proven how it affects financial services diversification in commercial banks. Therefore, the study’s objective was to determine the effect of mobile banking on the financial services diversification of commercial banks in Kenya. The study was a descriptive research targeting a population of 40 commercial banks that had been in operation between the period of 2012 to 2016. The study collected secondary data from financial reports filed with CBK. Data collected was analyzed using descriptive statistics such as mean, standard deviation, skewness, kurtosis and quartile values. Inferential analysis using correlation and multiple linear regression models were used. Test of assumptions such as multicollinearity tests were also run. The findings revealed that top tier banks have embraced mobile banking more than other tiers and their incomes were more diversified. Mobile banking was found to positively influence diversification of financial services as measured by HHI. Total assets had a positive relationship with diversification while efficiency ratio had a negative relationship. The study recommends that commercial banks should integrate technological innovations such as mobile banking to drive diversification which will in turn leads to better performance. It is suggested that future studies can be extended to other financial institutions such as deposit taking SACCOs and microfinance banks. | en_US |