The Impact of Mobile Banking on Financial Performance of Commercial Banks in Kenya
![Thumbnail](/bitstream/handle/11295/58800/Mwange_The%20impact%20of%20mobile%20banking%20on%20financial%20performance%20of%20commercial%20banks%20in%20Kenya.pdf.jpg?sequence=5&isAllowed=y)
View/ Open
Date
2013-10Author
Mwange, Johnson A
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
This study sought to determine the impact of mobile banking on the Financial
Performance of Commercial Banks in Kenya during a period of five years. Banks,
aided by technological developments, have responded to the challenges by adopting a
new strategy, which emphasizes on attempting to build customer satisfaction through
offering better products and services and at the same time to minimize operation
costs. The need/wish for mobility seems to be the driving force behind mobile
commerce in general hence the provision of mobile banking services has been
broadly used.
The study adopted a causal research design. It studied the 43 Commercial Banks in
Kenya for a period of five years between 2008 through 2012, data secondary in
nature, was drawn from the published financial reports of commercial banks and the
Central Bank of Kenya reports. Analysis involved multiple regressions of variables
under study that is the financial performance represented by return on assets, the
investment in mobile banking measured in Kenya shillings, the number of registered
mobile banking customers by the banks and the number of mobile banking
transactions by the banks.
From the regression model of 5 years the study found evidence of positive
relationship between mobile banking and bank performance. The study results show
that Mobile Banking has a moderate influence on profitability of commercial banks in
Kenya. Thus, there exists positive relationship between mobile banking and bank
performance. Based on the summary of the major findings of the study it can be
concluded that mobile banking offers banks several opportunities for increasing
revenues. From the investment in mobile banking measured and the number of
mobile banking transactions by the banks have a positive relation to the return on
asset (ROA) in that a unit increase in each / or all would result in an increase in the
performance indicator ROA.
The study recommends that commercial banks should therefore continue to adopt
new technologies which will improve their margins and hence their profitability.
Government policy makers should also review policies related to promotion of
innovation and transfer of technology that will improve profitability of organizations
because it will convert to better tax revenues for the government.
Citation
Mwange,Johnson A.;October,2013.The Impact Of Mobile Banking On Financial Performance Of Commercial Banks In Kenya.Publisher
University of Nairobi School of Business