| dc.description.abstract | Suoranta and Mattila (2004) have indicated that mobile phone banking is among the most
recent financial channels today. Several authors have further identified the benefits of mobile
phone banking in terms of ubiquity coverage, flexibility, interactivity, and with greater
accessibility compared to conventional banking channels such as Automated Teller Machine
(ATM), and non-mobile banking. There has been tremendous growth in Mobile phone
money transfers services in the country. Consequently, a number of institutions have initiated
various innovations and new products to be able to conveniently serve their customers and
reduce the long queues that were previously being experienced in the banking halls. As a
result, thirteen banks have signed up partnerships with mobile phone providers to facilitate
money transfer services for their customers. Several other banks have expressed interest to
introduce mobile financial services with the aim of offering better and convenient services to
their customers. Mobile money transfer services have been a phenomenal success and have
put the country at the global centre stage of financial inclusion and innovation. The study
sought to establish the relationship between mobile phone banking and financial performance
of commercial banks in Kenya. The causal study design was employed in this research. The target population composed of Commercial banks in Kenya. Mugenda and Mugenda, (2003), explain that the target population should have some observable characteristics, to which the researcher intends to generalize the results of the study. Secondary data was collected for the purpose of this study and was extracted from Central Bank Website Bank Supervision Department annual reports and from commercial banks. Statistical package for social sciences (SPSS) was used to analyze the data. Test of significance was carried out to determine the extent of relationship among study variables. The results presented the real situation of the banks financial performance within the given period, that is, year 2007, 2008, 2009, 2010 and 2011. The study found that there was a strong relationship between financial perfromance of commercial banks and size of the banks and mobile phone banking. Adoption of mobile phone banking has helped banks reduce costs and reach a greater customer base. Size of the bank was also found to positively influence the the financial perfomance of commercail banks in kenya. | en_US |
