Influence of Digital Financial Information Services on Financial Performance of Commercial Banks in Kisumu County, Kenya
- June 24, 2019
- Posted by: RSIS
- Category: Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue VI, June 2019 | ISSN 2454–6186
Martin Okode Opiyo1, Dr. Charles Ondoro2, Dr. Johnmark Obura3
1,2Department of Business Administration, Maseno University, Kenya
3Department of Management Science, Maseno University, Kenya
Abstract: – The purpose of this study was to determine the influence of Digital Financial Information Services (DFIS) on financial performance of commercial banks in Kisumu County, Kenya. It analysed four constructs of financial information service namely transaction alerts, online trading, digital market research and financial information dissemination. Findings revealed R2= 0.704, F cal(181.783, p=0.000); regression coefficients: financial information disemmination (β1=0.170, p=0.000<0.05), transaction alert (β2 =-1.376, p=0.000<0.05); online trading (β3 =0.728, p=0.001<0.05) and digital market research (β4 =0.947, p=0.000<0.05). The study concluded DFIS significantly influebce financial prrformance of commercial banks in Kisumu County, Kenya.
Key Words: Financial information dissemination, transaction alerts, online trading, Digital market research, bank financial performance.
I. INTRODUCTION AND BACKGROUND OF THE STUDY
The banking financial information services is experiencing high-speed digital transformation today, affecting financial performance of commercial banks across the globe. The rapid changes in the technological and innovation use of digital financial services, coupled with the patrons preference for use of digital channels, has transformed the speed with which information, including financial related ones, are generated, shared and stored.
As a prime area of financial innovation in the current decade, digital finance has revolutionised financial services provision due to its consumer-need-response characteristics such as sharing, convenience, low cost and easy access (Buckley, & Malady, 2015). Digital finance, is defined as financial services delivered over digital infrastructure including mobile and internet with low use of cash and traditional bank branches. Mobile phones, computers, or cards used over point-of-sale (POS) devices connect individuals and businesses to a digitized national payments infrastructure, enabling seamless transactions across all parties (Digital Finance Institute, 2016; Błach, 2011; Bank, 2001). At every point, these transaction generates information or data which are vital for managerial finance decision making.
