Effect of Mobile Bank Innovation and Cost of Implementation on Financial Performance of Commercial Banks in Kenya (A Case Study of a Commercial Bank in Embu County)
- August 7, 2019
- Posted by: RSIS
- Category: Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue VII, July 2019 | ISSN 2454–6186
Dr John Cheluget (PhD)1, Josphine Wambeti Munyi2, Moses Leseiyo3, Edna Bonareri Moriasi4
1Deputy Vice-Chancellor of The Management University of Africa, Kenya
2BML, The Management University of Africa, Kenya
3MBA, The Management University of Africa, Kenya
4MML, The Management University of Africa, Kenya
Abstract:-Financial institutions in Kenya are in the process of significant transformation. The force behind the transformation of these institutions is innovation in information technology, rapid development of information technology has made banking tasks more efficient and cheaper. Banks are now increasingly choosing mobile platforms for innovative payment models and commerce capabilities. The general objective of the study was to analyze the effect of mobile banking innovation on the financial performance of Commercial Banks in Kenya. The specific objective was to establish the effect of mobile banking innovation financial performance of commercial banks in Kenya and to ascertain the extent to which the costs of implementing and maintaining mobile banking service influence the financial performance of Commercial Banks This study adopted descriptive research design. Target population was a total of 120 respondents from a commercial bank of study in Embu. Stratified random sampling method was used to pick a sample size of 36 respondents. The study collected both primary and secondary data. Primary data was collected using questionnaires. Secondary data was collected from annual reports of the bank. The collected data was analyzed using descriptive statistic especially frequency and percentage presentation. The findings were presented using Graphs and Frequency Distribution Tables. The findings established that new innovation on mobile banking products and costs of implementing and maintaining mobile banking service influence the profitability and creation of shareholder wealth in the bank. This study concludes that new mobile banking product innovation significantly influence financial performance of commercial banks in Kenya
Key Words: Automatic Teller Machine, Central Bank of Kenya, Information Communication and Technology, Kenya Bankers Associations, Short Message Service, Technology Acceptance Model, Wide Area Network and Personal Identification Number.
