dc.description.abstract | The global business landscape is evolving quickly and is quite competitive. In this situation,
the majority of firms are becoming aware that knowledge is the most crucial resource for
establishing long-term competitive advantage. Therefore, financial innovation is created to
offer strategy, procedure, and technology to improve corporate effectiveness. The research
assessed the effect of financial innovations on financial performance of commercial banks in
Kenya using a descriptive research design. The study population composed 42commercial
banks in Kenya as at 31 December 2021. This research collected data for five years from
2017 to 2021. The regression method was preferred to analyze and determine the effects of
every independent study variable. The study findings showed there exists a direct relation
linking mobile banking to commercial banks performance (Beta= 0.113, P=.039). They
revealed Internet banking had direct moderate influence on the Commercial banks ROA
(Beta= 0.133, P=.000). Agency Banking had strong direct influence on ROA (Beta= 0.106,
P=.008). They further indicated that capital adequacy positively influenced Commercial
banks performance (Beta= 0.002, P= .069). The study results also indicated that there exists
an inverse correlation between Asset quality and commercial banks performance (Beta= -
0.506, P= .000). Finally, bank size to commercial banks ROA (Beta=0.411, P= .000). | en_US |