| dc.description.abstract | Mobile banking is a service provided by financial institutions in cooperation with
mobile phone operators. It allows customers with busy lives to conveniently do their
banking using their phones anytime. It is about getting banking services to the
unbanked, those who do not have bank access or bank accounts, and those who are at
the bottom of the economic pyramid, often living in remote areas. The study sought to
determine the effect of mobile banking on financial performance of commercial banks
in Kenya. Cross sectional descriptive survey was employed in this case. This
informed who, how and what about the mobile banking in commercial banks in
Kenya and as a one-time event. The study adopted a census method where all the
commercial banks practicing mobile banking in Kenya were studied. The study made
use of secondary data from the Audited Financial statements of the Banks, those
deposited at the Nairobi Securities Exchange and financial performance data from
CBK annual banking survey reports. The data collected was cleaned, coded and
systematically organized in a manner that facilitates analysis using the Statistical
Package for Social Sciences (SPSS). Quantitative analysis was analyzed through
descriptive statistics such as measure of central tendency that generated relevant
percentages, frequency counts, mode, and median and mean where possible. To test
for the strength of the model and the effects of mobile banking on the financial
performance of commercial banks in Kenya, the study conducted an Analysis of
Variance (ANOVA). From the regression model, the study found out that there were
mobile banking variables influencing the financial performance of commercial banks
in Kenya, which are annual amount of money moved through mobile banking,
number of users of mobile banking, capital adequacy, asset quality, bank liquidity and
management efficiency. They influenced it positively. The study found out that the
intercept was 1.076 for all years. The six independent variables that were studied
(annual amount of money moved through mobile banking, number of users of mobile
banking, capital adequacy, asset quality, bank liquidity and management efficiency)
explain a substantial 75.1% of financial performance of commercial banks in Kenya
as represented by adjusted R2 (0.751). The study therefore concludes that mobile
banking positively and significantly affects the financial performance of commercial
banks in Kenya. The study recommends that policy makers consider mobile banking
in their formulation of policies because of the technological developments and the
expected switch from physical branch networks to technologically supported banking
services.The study further recommends that commercial banks keep adopting and
using mobile banking in their operations because the number of people with access to
a mobile hand set is increasing every day. | en_US |
