| dc.description.abstract | Commercial banks in Kenya are at crossroads. The new electronic age has transformed the
delivery of banking services. Customers nowadays demand new and differentiated financial
products and services. In essence banks must search for new strategies of delivering their
products and services. With pressure from dynamic and advancement of technological
innovation, different electronic distribution channels have been adopted to meet the demands
of customers.
The main objective of this research is to determine the relationship between the level of
technological innovation and financial performance of the commercial banks in Kenya. This
study used a descriptive survey owing to the small number of commercial banks in Kenya.
The data for this study was obtained from primary source with the use of well structured and
pre-tested questionnaires which were distributed among management team of Kenyan banks.
The study concluded that commercial banks have continuously employed various
technological innovations which include ATM services, Electronic money transfers, mobile
banking, internet banking services and online account opening. The study concludes that
technological innovations have lead to increased financial performance of commercial banks
in Kenya through increased bank sales, return on equity and profits increment. The study
recommends that for banks to meet their customers needs and remain competitive then they
need to employ modern technological innovations such as internet based banking and online
account opening at a great extent.
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