The relationship between financial innovation and financial performance of commercial banks in Kenya
Gitau, Robert M
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This study sought to determine the relationship between financial innovation and financial performance of commercial banks in Kenya. This study took on a Quasi-experimental research 'design. Data collected was edited for accuracy, uniformity, consistency and completeness and arranged to enable coding and tabulation before final analysis. Qualitative and quantitative analysis techniques were used. Qualitative data was analyzed by categorizing and grouping thematic contents through content analysis to address the research questions. Quantitative analysis was analyzed through descriptive statistics such as measure of central tendency to generate relevant percentages, frequency counts, mode, median and mean. The study also used multiple linear regressions to analyze the data. The study concluded that commercial banks had adopted process, product and institutional innovation. Product innovation strategy adopted by the banks was credit cards.Mobile banking was the most used form of process innovation. The banks made use of A TM deposits, internet banking and RTGS to little extent. It was clear that adoption of financial innovation was very important in the improvement of financial capital adequacy of commercial banks. The study therefore suggests that further research should be conducted in all the commercial banks to investigate into the effects of financial innovation strategies.