Information Systems Innovations and Financial Fraud in Commercial Banks in Kenya
Abstract
financial fraud in commercial banks in Kenya. The objective of the study was to
determine the relationship between the information system innovation and financial
fraud .The study concluded that commercial banks had adopted various innovations
including credit cards, RTGS, mobile banking, internet banking, insurance services,
credit reference bureaus and Islamic banking. The population of study was all the 43
commercial banks in Kenya There was a relatively positive explanatory relationship
between information system innovations and financial fraud among commercial banks in
Kenya; the coefficients are significantly different from zero. The Correlation Matrix
shows that there is a strong positive relationship between information system innovations
and financial fraud with an association of positive .764. The relation between the bank
characteristics and financial fraud was also positive at .781 while the relation between
bank characteristics and information system innovations was also positive at
.726.However there was a marked increase in occurrence of fraud in direct relation to the
invention of more financial innovations hence there is need to ensure any new inventions
are risk free and do not increase the vulnerability of commercial banks to fraudsters who
are continuously evolving and becoming more sophisticated. The study suggests further
research should be conducted in commercial banks to ascertain the most fraud prone
innovation techniques and strategies. This could be extended to other financial
institutions and industries within the economy that are rapidly adopting new cutting edge
technologies
Publisher
University Of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
The following license files are associated with this item: