INFLUENCE OF MOBILE BANKING ON FINANCIAL PERFORMANCE OF LISTED TIER 1 COMMERCIAL BANKS IN KENYA

Ronoh Obadia, Dr. Sammy Kumungunyi

Abstract


This study sought to determine the influence of mobile banking on financial performance of listed tier 1 commercial banks in Kenya. The study adopted a causal research design to test the cause and effect relationship between the variables. The target population for this study was at two levels. The first target population was at institutional level where the study targets 6 listed tier 1 commercial banks in Kenya in operation as at 31 December 2016. Primary data was collected by administering open and close-ended questionnaire to the respondent. Secondary data was extracted from the annual financial reports released in their annual reports by the banks and annual supervision reports released by the Central Bank of Kenya.  Analysis was done with the help of statistical package for social sciences (SPSS) version 21 and Microsoft excel 2016. Regression analysis was used find out the effect of mobile banking on the financial performance of Listed Tier one commercial banks in Kenya. The study findings established that mobile banking has a negative but insignificant relationship with financial performance. The study recommends that Listed Tier 1 commercial banks should continuously invest in alternative channels as it would afford them a better cost control measure compared to traditional investments but come up with several other ways of utilizing and returns from mobile banking.

Keywords: Mobile Banking, Financial Performance


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