| dc.description.abstract | This thesis set out to ascertain the relationship among Bancassurance, Sales Channels, Savings Mobilization
and financial performance of commercial banks in Kenya by addressing five key gaps observed in
literature.Four specific objectives were developed and analyzed namely: to ascertain the relationship
between bancassurance and financial performance of commercial banks in Kenya; to determine the
intervening effect of savings mobilization on the relationship between bancassurance and financial
performance of commercial banks in Kenya; to establish the moderating effect of sales channels on the
relationship between bancassurance and financial performance of commercial banks in Kenya; ultimately,
to establish the joint effect of bancassurance, sales channels and savings mobilization on the financial
performance of commercial banks in Kenya. A population of twenty seven (27) commercial banks
undertaking bancassurance in Kenya licensed by the Central Bank of Kenya was covered whereby a
sample of twenty four (24) responded therefore attaining a response rate of 88.9%. Basic statistical tests
were executed encompassing reliability tests by utilizing the Cronbach's alpha, normality tests by
employing Shapiro-Wilk measure and multicollinearity tests; descriptive statistics including the mean,
standard deviation, coefficient of variation, skewness and kurtosis tests; correlation analysis by applying
Spearman's rank order coefficient; and Data Envelopment Analysis (DEA) technique to determine the
efficiency scores of sales channels. Ultimately, the hypotheses were tested by applying multiple
regression analysis.The findings indicated that there is a statistically significant positive relationship
between bancassurance and financial performance of commercial banks; savings mobilization has no
statistically significant intervening effect on the relationship between bancassurance and financial
performance of commercial banks; sales channels have no statistically significant moderating effect on
the relationship between bancassurance and financial performance of commercial banks; finally,
bancassurance, sales channels and savings mobilization have a statistically significant joint effect on the
financial performance of commercial banks in Kenya. The study concludes that the connection between
bancassurance and financial performance is positive, hence the higher the bancassurance transactions, the
better the financial performance of commercial banks. This supports diversification by commercial banks
into non-traditional financial intermediation activities. The findings of this study have contributed to
existing knowledge in theory, practice and policy in the domain of bancassurance, sales channels, savings
mobilization and financial performance by adducing evidence that the relationship between
bancassurance and financial performance of commercial banks is direct without the intervention of
savings mobilization and moderation by sales channels.Moreover, the joint effect of bancassurance, sales
channels and savings mobilization on the financial performance of commercial banks was examined, a
relationship that had not been investigated by prior empirical studies. Methodological values are offered
by virtue of measuring financial performance of commercial banks by a weighted composite index
derived from pre-tax profits, return on assets and non-interest income as a ratio of total income. The
managers of commercial banks will find this findings beneficial in making diversification decisions into
non-traditional financial intermediation activities to improve financial performance. Government policy
makers and regulators such as the Central Bank of Kenya and Insurance Regulatory Authority will gain
from the findings of this study by formulating policies and regulations that allow the blurring of
operational boundaries between commercial banks and insurance companies to enhance growth of the
financial sector.The study encountered the limitation of less bancassurance transactions (less data) in the
initial year of study of 2011, as most commercial banks in the sample did more bancassurance business as
from 2012 | en_US |
