The effect of financial innovations on the competitiveness of commercial banks in Kenya
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Date
2013-11Author
Ogutu, Victor O
Type
ThesisLanguage
enMetadata
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Improvement of financial innovations is widely recognized as one of the essential elements in
strengthening the competitiveness of an entity. A sharp acceleration in the pace of innovation,
deregulation and structural change in recent years has transformed the international financial
system in many important ways and the advances in computer and telecommunication
technologies make many of the innovations possible in the present world.
For the purpose of this study the researcher sought to determine the effect of financial
innovations on the competitiveness of commercial banks in Kenya. This study adopted a
descriptive research design as it is concerned with finding out the what, where and how of a
phenomenon. The focus of descriptive research is the careful mapping out of circumstances,
situation or set of events to describe what is happening or what happened.
The target population of the study constituted of 43 registered commercial banks in Kenya who
were senior managers, relationship/branch managers finance officer at commercial banks in
Kenya. The study administered the questionnaires which included structured and unstructured
questions to all respondents since it was the most appropriate way to gather information also
secondary data was derived from banks websites, central banks websites and various
publications. Descriptive statistics as mean, standard deviation and frequency of distribution
were used to analyze the data. Data presentation was done by use of tables for ease of
understanding and interpretation.
This study found out that there is a direct relationship between financial innovations and
competitiveness of commercial banks. The absolute values indicate that Process and
technological innovations had greater weight when it comes to determining the competitive level
of a commercial bank. This study recommends that commercial banks should put more emphasis
on technological advancement so as to enhance the processes they offer to the general public and
this will enable the bank to offer efficient and effective services to the public and as a result of
this they will be very competitive in the markets.
Citation
A Research Project Submitted In Partial Fulfillment Of The Requirement For The Award Of The Degree Of Master Of Business Administration School Of Business, University Of NairobiPublisher
University of Nairobi School of Business