The relationship between financial innovation and profitability of Commercial Banks in Kenya
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Date
2011-10Author
Wairagu, Githakwa P
Type
ThesisLanguage
enMetadata
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This research project will examine the adoption of product, process and institutional innovations
in the Kenyan commercial bank in the period 2005 to 2010. The research analyzes the
relationship between the adoption of financial innovation and the profit levels of commercial
banks in Kenya. The research will look at the 44 registered commercial banks by the central
bank of Kenya. Internal and external environmental factors will also be put into consideration as
determinants of the Kenyan commercial banks profitability by including them in the analysis of
the relationship between financial innovation and Kenyan commercial profitability. There is no
doubt that many commercial banks have embrace financial innovation as way increase efficiency
and improve the banks performance. This innovations have included massive branch network
expansion, development of unique product that serve specific groups and automation of banking
services that have enabled customers to carry out banking transaction outside the confine of the
banking premises, either on their phone or over the internet.
This project will be different from other research studies as many of the studies focused on banks
performance as a general and many of the studies were based on other countries and were not
specific to the Kenya context. The project will be important as it will provide crucial information
to the body of knowledge and for other research in future. The research will use primary data in
the form of questionnaire and review of secondary data.
Many commercial banks in Kenya have adopted financial innovation as imitators just to move
with time. This research will seek to understand if financial innovation is a waste of resource or
if it has a direct relation with the level of profits enjoyed by commercial banks in Kenya.
Citation
MBAPublisher
School of Business