Effect of Automation of Accounting Services on the Performance of Commercial Banks in Kenya

Abstract

Purpose: The purpose of this study was to determine the effect of the automation of accounting services on the financial performance of the commercial banks in Kenya. Methodology: The study adopted a descriptive survey study model in which data was collected from all the commercial banks in Kenya. The likert scale was used to design the data collection tool. The data collected from primary sources was analyzed descriptively using the SPSS software. Findings: The response rate for the study was 73%. The predictor variables of the study were accounting software, automated accounting functions and accounting software securities while the dependent variable was financial performance. The control variables of the study were bank rates and bank size. The study findings showed that the performance of commercial banks is determined 46.5% by the factors of automation of accounting services under study, while 53.5% is accounted for by other variables not under this study. Implications: The study concluded that the automation of accounting standards does affect the financial performance of the commercial banks in Kenya. It further concluded that although the automation of accounting services does affect the performance of commercial banks, it cannot be held as a strong estimator of the financial performance of commercial banks but should be backed with other factors not under this study. Value: the study focused on the automated accounting services of the commercial banks, which would help banks to refocus and capitalize on the areas of great gain. The findings and conclusions will assist the banks to focus more on the variant performance evaluation measures when determining the significance of applied systems