Influence of Cheque Truncation System Project on Financial Performance of Kenyan Commercial Banks: a Case of Nairobi County
Abstract
The face of the banking industry has been dramatically altered by rapid technological advances over the last couple of years. Globalization and deregulation are transforming the world of banking and financial systems. Banking services by telephone, Internet or e-banking, smartcard applications, ATMs, including the cheque truncation system, are technological innovations that are taking place very quickly in the global banking industry. The main objective of this research was to study the influence of the cheque truncation System (CTS) on the financial performance of Kenyan commercial banks listed in the Nairobi Stock Exchange (NSE). The study used a descriptive research design since it was considered to be the most appropriate time horizon because the information was collected at a given time over a short period. The target population comprised of 11 commercial banks listed in the NSE in the county of Nairobi. The sampling unit consisted of bank agents and the study selected 5 agents from each bank to make a total sample size of 55 respondents. In addition, 11 managers were selected from each bank to answer questions according to the interview guide. A semi-structured questionnaire was used as the main data collection tool. In this study, 55 questionnaires were distributed to the respondents and analysed. The data collected were presented in form of tables and with the help of the statistical package for Social Science (SPSS), the study produced descriptive statistics and inferential statistics results. The results of the study showed that the influence of Cheque Truncation System on financial performance of commercial banks in Kenya is statistically significant. Since the research was not exhaustive, a recommendation for further study on the same field was suggested.
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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