The effect of mobile banking on the financial performance of commercial banks in Kenya
Information and communication technology has brought a complete paradigm shift on the banks performance and on the customer service delivery in the banking industry. In a bid to catch up with global development, improve the quality of customer service delivery, and reduce transaction cost, banks have invested heavily in ICT and have widely adopted ICT networks for delivering a wide range of value added products and services. This research studied mobile banking and its effect on commercial banks’ financial performance indicators specifically profit before tax. The main objective of this study was to establish the effect of mobile banking on financial performance of commercial banks in Kenya. A descriptive survey design was used. The study has used secondary data of all the forty three active commercial banks in Kenya. The source of the data was the financial statements of these commercial banks and reports from Central Bank of Kenya. Statistical analysis was done with the aid of Statistical Package of Social Sciences (SPSS) software. The findings revealed that mobile banking had statistically significant influence on profitability of commercial banks in Kenya and tests for significance also showed that the influence was statistically significant. Based on the findings of the study, it can be concluded that mobile banking influences financial performance of commercial banks in Kenya positively. It is therefore recommended to the management of commercial banks and the Government continue to explore and implement sustainable business linkages and collaborations with mobile phone service providers as well as the internet service providers as a way of accelerating the penetration of innovations and eventually creating desired impacts in the economy. Banks should leverage on mobiles phones in order to grow their business and customer base.