INFLUENCE OF ONLINE TRADING ON THE PERFORMANCE OF COMMERCIAL BANKS IN TRANS-NZOIA COUNTY KENYA

Mamer Panchol, Dr. Ruthwinnie Munene, Dr. Peter Simotwo (Ph.D)

Abstract


This study was pictured from a financial landscape where traditional banking norms are swiftly evolving in response to technological advancements and shifting consumer behaviours. In this era of financial revolution, from contactless payments to robot-advisors, cryptocurrencies, fintech innovations, and decentralized finance are becoming ubiquitous, traditional banks face a pivotal crossroads. This research project aims to unravel the influence online trading on the performance of commercial banks in Trans-Nzoia County Kenya. The study was anchored on Innovation Diffusion Theory. The study utilized a descriptive research design. A sample size of 136 respondents was determined from a target population of 207 people using Yamane’s formulae. Questionnaires were used in collecting data. The study employed both descriptive and inferential statistics in analysis and used correlation and regression analysis as key analytical models. Results established varied disparities in performance of commercial banks. Regression results demonstrated that online trading had statistically significant influence on performance of commercial banks. The Coefficient of Determination or R square stood at 0.721, which implied that 72.1% of the variation in the performance of commercial banks was explained by variability in online trading. Pearson Correlation Analysis results further demonstrated a positive relationship between online trading on performance of commercial banks. The study recommends enhanced cross selling opportunities, online trading tools or platforms to build a strong and continuous management collaboration platform to enhance the performance of commercial banks.

Keywords: Online Trading, Performance, Commercial Banks


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