The Effect of Financial Technology on the Financial Performance of Commercial Banks in Kenya
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Date
2018Author
Abdulkadir, Mohamed I
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Numerous changes that have taken place in the Kenya banking sector necessitates each
commercial bank to act diligently to increase its financial performance. One of the areas
where commercial banks should capitalize is financial technology that looks at the
innovations brought by technological advancement to bring throughput and enhance
financial performance. This study aims to look at the effect of financial technology on
financial performance of commercial banks in Kenya. The study was based on
Technology acceptance model, diffusion innovation theory and resource based theory.
Financial technology was determined by the number of transactions that were undertaken
through mobile banking and transactions undertaken through internet banking. Data was,
however, only found in 35 commercial banks that represented a response rate of over
80%. Size of the commercial bank and capital adequacy ratio acted as the control
variables of the study. Secondary data was collected for all the commercial banks in
Kenya for descriptive research design that was used in the study to summarize the data
using SPSS 21. Pearson moment correlation was conducted to establish the linear
relationship between study variables. Regression analysis was conducted to establish the
nature of the relationship. The study concluded that a positive significant effect of
financial technology on financial performance was observed while the model predicted
45.4% of the dependent variable. The study recommends that commercial banks should
continue investing in financial technology.
Publisher
university of nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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