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1
Mulwa, Martina Mutheu, and Timothy Mwololo Waema. "Understanding Mobile Banking from a Theoretical Lens." International Journal of Innovation in the Digital Economy 7, no. 1 (January 2016): 54–68. http://dx.doi.org/10.4018/ijide.2016010105.
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Characteristic of every developing nation, Kenya has found itself at crossroads; defining the banking industry with the urge to provide banking services to majority of the unbanked populations. Mobile banking is a banking model that has been adopted by Kenyan Banks to reach out to unbanked populations. This paper is based on a case study conducted in Kenya on selected mobile banking products in 2012. The Actor Network theory methodology was used to identify and follow actors. Using in-depth interviews with key informants, survey of users and agents as well as focus group discussions and observation, it was established that agent phones and Point of service (POS) devises were used to deliver traditional banking services to users whose access mode was their mobile phone or debit cards. There existed partnerships between banks and mobile network operators whose operations were regulated by the Central Bank of Kenya and the Communications Authority of Kenya. This paper seeks to explore fundamental requirements for the interplay of actors in the execution of mobile banking services. It critically analyses data collected, with reference to the Network Society theory by Manuel Castells and Actor Network theory by Michael Callon and Bruno Latour, to inform on cross-sectoral partnerships and user attributes necessary in mobile banking uptake and use.
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Isabwa, Harwood Kajirwa. "Effect of Mobile Banking on Financial Inclusion Among Commercial Banks in Kenya." International Journal of Business, Management and Economics 2, no. 3 (September 19, 2021): 184–97. http://dx.doi.org/10.47747/ijbme.v2i3.315.
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Mobile banking is a precursor for the realization of financial inclusion among commercial banks in Kenya. The study's main objective was to determine the effect of mobile banking on financial inclusion among commercial banks in Kenya. The study adopted a positivism research philosophy. The study adopted an expo-facto research design because secondary data was the primary source data. The target population was 43 commercial banks in Kenya. The sample size was 39 commercial banks, but only ten commercial banks were selected because they had the best mobile banking apps. Inferential statistics adopted were; Pearson correlation and regression analysis. The study results revealed that mobile funds transfers significantly affect financial inclusion (β =1.697, p= 0.000). Cash withdrawals via mobile platforms significantly affect financial inclusion (β =1.195, p= 0.000). The study concluded that mobile banking has a significant effect on financial inclusion among commercial banks. In contrast, deposits via mobile platforms have a significant positive effect on financial inclusion (β =.354, p= 0.000). The study recommends that all financial institutions should adopt mobile banking as it helps to achieve financial inclusion. The banking sector should adopt the most appropriate mobile banking strategies to enhance financial inclusion.
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Ireri, Naomi Wanja, and Gladys Kimutai. "Financial Innovations and Performance of Commercial Banks in Kenya." International Journal of Current Aspects in Finance, Banking and Accounting 2, no. 2 (September 14, 2020): 21–33. http://dx.doi.org/10.35942/ijcfa.v2i2.128.
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Commercial banks in Kenya have embraced alternative banking channels which represent a shift in delivery of banking and financial services since the alternative banking have become synonymous with commercial banks in Kenya. While banks have succeeded in leveraging available technology and provide alternative avenues to customers for banking services, the challenge it faces today is optimizing the usage of these channels so as to improve on their performance. The general objective of this study was to investigate the effects of financial innovations on the performance of commercial banks in Kenya. The specific objectives of the study were to examine the influence of internet banking, mobile banking, agency banking and ATM banking on the performance of commercial banks in Kenya. The study was guided by agency theory, balanced score card and diffusion of innovation theory. This study employed a descriptive research design. The study targeted44 commercial banks in Kenya as at 2017. The 16 banks which embrace all the four financial innovations from 2013 to 2017were selected using purposive sampling method. The sample size was 80 respondents who comprised of 5 senior management employees in each of the selected banks.This study used questionnaire to collect primary data from the respondents. Content analysis technique was used to analyze qualitative data collected from open ended questions in and reported in narrative form. Descriptive statistics such as mean and standard deviation were used to analyse the quantitative data. Multiple regression analysis was used to show the relationship between independent variables against dependent variable. The study revealed that internet banking, mobile banking, agency banking and ATM banking had a positive and significant effect on the performance of commercial banks. Thisstudy concludes that the banking industry has benefited tremendously from the development of the Internet. The Internet fundamentally changed the way in which banking networks are designed to meet the client demands and expectations. Mobile banking provides a good opportunity to commercial banks in Kenya to reach many mobile phone subscribers in Kenya who had remained unbanked and unreached due to limited access to bank branch networks in the country. The access to the large masses through mobile banking of the population gives banks the opportunity to grow by reaching the unbanked population. Agency banking has led to accessibility of financial service to many customer in remote areas and hence an increase in effectiveness and efficiency in service delivery. Customers are satisfied with the automated teller machine services because of ease of use, transaction cost and service security but not satisfy with automated teller machine dispense of cash. The study recommends that the public and businesses must be encouraged to use Internet banking in their daily activities, including deposits, payments and money transfers. Commercial banks in Kenya should ensure convenience and security of mobile banking through written guidelines on convenience and security of mobile banking. Commercial banks in Kenya should increase the number of agents in estates and in the rural areas. This can be done by reducing the requirements of becoming a bank agent. The banks should employ customized software that records relevant information on automated teller machine cards so that banks can establish whether unauthorized transaction has taken place or not.
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Nduta, Rosemary Wangari, and Jane Wanjira. "E-Banking Strategy and Performance of Commercial Banks in Kenya." International Journal of Current Aspects 3, no. V (October 24, 2019): 147–65. http://dx.doi.org/10.35942/ijcab.v3iv.68.
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Technological innovations in the aspect of electronic banking (e-banking) have progressively advanced and changed the manner in which banks offer services. The use of varied forms of technological innovations has become a key strategy that influences the competitiveness and performance of commercial banks. Subsequently, banks are investing more in adopting and implementing innovative e-banking strategies. Although numerous studies have inspected the effect of e-banking on banks across the world, the knowledge gap is that few studies have examined the impact of e-banking strategies on commercial banks’ performance in Kenya. The objectives of this study were to predict the impact of agency banking, mobile banking, the use of ATMs, and internet banking on the commercial banks’ financial performance in Kenya. Agency theory, contingency theory, diffusion of innovations theory, and technology acceptance theory formed the theoretical basis of this study. In its research design, the study used the descriptive approach. The target population comprised managers of 40 commercial banks and the study utilized the purposive sampling method to select 100 respondents comprising of 40 senior managers and 60 operations managers. Descriptive statistics, correlation, and regression analysis were used to analyze data. Correlation analysis indicated that mobile banking (r = 806, p = 0.000), agency banking (r = 0.737, p = 0.000), internet banking (r = 0.466, p = 0.000), and ATM banking (r = 0.547, p = 0.000) have statistically significant relationships with the commercial banks’ performance. Findings indicate that e-banking accounts for 71% (R2 = 0.710) of the variation in the commercial banks’ performance. Moreover, the study found out that e-banking strategies of agency banking and mobile banking are statistically significant predictors (p<0.01, while internet banking and ATM banking are statistically insignificant predictors (p>0.01). Based on these findings, the study concludes that rely on e-banking strategies in enhancing their performance, particularly mobile banking and agency banking. Furthermore, the study concludes that ATM banking and internet banking contribute minimally to the commercial banks’ performance in Kenya. Thus, the study recommends banks to optimize mobile banking and agency banking because they are statistically significant predictors while increasing awareness of internet banking and addressing insecurity issues of ATM banking. Thus, further research should consider establishing factors that account for the unexplained variances of 29% in the performance of commercial banks.
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Eric, Musalia Kilasi, and Dr Oluoch Oluoch. "EFFECTS OF MOBILE BANKING ON CAPITAL STRUCTURE OF COMMERCIAL BANKS IN KENYA." International Journal of Finance and Accounting 2, no. 6 (October 18, 2017): 20. http://dx.doi.org/10.47604/ijfa.497.
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Purpose: The aim of this study was to explore the effects of mobile banking on the capital structure of commercial banks in Kenya. Materials and methods: The study adopted descriptive cross sectional survey. The study population was 43 commercial banks in Kenya as at December 2015. The study adopted a descriptive survey research design that is cross-sectional in approach. The study covered the period 2010 to 2015. Secondary data set was gathered from the Audited Financial statements of the Banks, those deposited at the Nairobi Securities Exchange and CBK annual banking survey reports. A survey of all the 43 commercial banks was undertaken banks. A census of all the 43 banks was done. Statistical Package for Social Sciences (SPSS) version 21.0 complimented by STATA software was used to aid in data analysis. Results: The study revealed that amount of loans issued, amount of withdrawals, amount of deposits and number of mobile bank users were satisfactory variables in explaining capital structure of commercial banks in Kenya. This is supported by coefficient of determination of 59.41%. Result findings revealed that amount of deposits was positively and significantly related to capital structure of the commercial banks. Recommendations: It is therefore recommended that commercial banks focus on building a strong relationship with customers. Further, it is recommended that commercial banks expand the mobile banking through adoption of mobile technology. The study used secondary data to determine the relationship between mobile banking and capital structure of commercial banks in Kenya.
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Mugane, Maurine, and Reuben Njuguna. "Mobile Banking Services with Financial Performance on Commercial Banks in Kenya." International Journal of Current Aspects 3, no. VI (November 22, 2019): 176–92. http://dx.doi.org/10.35942/ijcab.v3ivi.84.
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The competition dimensions have changed following the adopting of various internet banking services that came about as a result of technological innovations such as the introduction of Automated Teller Machines (ATMs), phone banking Personal computer banking which were some of the first innovations of electronic finance. The main objective of this study was to establish the impact of mobile banking services on the financial performance of commercial banks in Kenya. The specific objectives guiding this study included to assess the influence of short message service (SMS) banking on the financial performance of commercial banks in Kenya, to establish the effect of person to person payments on the financial performance of commercial banks in Kenya, to determine the effect of bill payments on the financial performance of commercial banks in Kenya and to find out the effect of airtime top up service on the financial performance of commercial banks in Kenya. The research design that the study adopted was a descriptive research design employing quantitative research strategies. In this study the target population under investigation was all the 40 commercial banks in Kenya. Since in the current study the target population was 80 participants from all the 40 commercial banks in Kenya a census inquiry method was the best method used. Primary data for this study was collected through the use of a questionnaire that was given senior managers from all the departments of these organizations. Both quantitative and qualitative data was generated in this study. Qualitative data was analysed using content analysis whereby content of responses was looked at and responses were grouped together in relation to common patterns or themes for coherent categorization. Descriptive statistics included measures of central tendency and dispersion thus standard deviation and mean and use of absolute and relative percentage frequencies. Presentation of quantitative data was in form of graphs and tables and explanation given in prose. The study findings show that short message service had an above average positive correlation with financial performance of commercial banks and was statistically significant. Person to person had an average correlation with financial performance of commercial banks and was statistically significant. Bill payments had a strong positive correlation with financial performance of commercial banks and was statistically significant. Airtime top up service had an strong positive correlation with financial performance of commercial banks and was statistically significant. The study concludes that short message service banking has become and important part of banking, more and more people prefer to receive banking alerts through short message service which has not only improved service delivery but has had a positive impact on financial performance. Commercial banks have experiences large revenues from different activities with the banking system core among them the bill payments activities. The study recommends that it is important for commercial banks to focus more on short message service banking to lower operational costs thereby improving financial performance. Commercial banks need to consider using person to person payments to improve on their performance, they need to enhance their bill payments to get more clients paying bills using their systems so as to improve on their financial performance and that it is important for commercial banks to put more effort on airtime top up service so as to improve on their financial performance.
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Mutheu Mulwa, Martina, and Timothy Mwololo Waema. "Understanding mobile banking from a theoretical lens: Case studies of selected Kenyan m-banking products." INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY 10, no. 8 (October 21, 2015): 2434–44. http://dx.doi.org/10.24297/ijmit.v10i8.6559.
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Characteristic of every developing nation, Kenya has found itself at crossroads; defining the banking industry with the urgeto provide banking services to majority of the unbanked populations. Mobile banking is a banking model that has beenadopted by Kenyan Banks to reach out to unbanked populations. This paper is based on a case study conducted in Kenyaon selected mobile banking products in 2012. The Actor Network theory methodology was used to identify and followactors. Using in-depth interviews with key informants, survey of users and agents as well as focus group discussions andobservation, it was established that agent phones and Point of service (POS) devises were used to deliver traditionalbanking services to users whose access mode was their mobile phone or debit cards. There existed partnerships betweenbanks and mobile network operators whose operations were regulated by the Central Bank of Kenya and theCommunications Authority of Kenya. This paper seeks to explore fundamental requirements for the interplay of actors inthe execution of mobile banking services. It critically analyses data collected, with reference to the Network Society theoryby Manuel Castells and Actor Network theory by Michael Callon and Bruno Latour, to inform on cross-sectoralpartnerships and user attributes necessary in mobile banking uptake and use.
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Mohamud, Hussein Hillowle, and Fredrick Warui. "Innovative Banking Practices and Financial Performance of Commercial Banks in Kenya." International Journal of Current Aspects in Finance, Banking and Accounting 3, no. 1 (August 13, 2021): 41–53. http://dx.doi.org/10.35942/ijcfa.v3i1.180.
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Commercial banks serve as key financial intermediaries in facilitation of the flow of money in the banking industry. Commercial banks offer credit to investment banks in order to offer investment opportunities for risky investments especially for financial securities using depositors’ money. Globally, banks are affected by broad difficulties in the operating environment. The banking industry has embraced innovation to sustain competitiveness. Financial innovations used by commercial banks revolve around the latest product, service and its conveyance to consumers. Consequently, this information influenced the research with its aim as; investigating innovative banking applications and monetary capability of banks. Particular goals included examining how; real time gross settlements (RTGS), electronic fund transfers (EFT), pay bill innovation in mobile banking and the extent of agency banking influence monetary potential of banks. Research anchored on the Schumpeter theory of innovations, the agency and bank-led theories. It was explanatory in nature and applied a census approach to gather information. The targeted group included commercial banks registered under the Central Bank totalling to 42 tiers 1. Raw and derived data was equally utilized including, financial statements and face to face interviews with top level managers. Collected information was examined by SPSS. Given conclusions were dispensed descriptively, and by inferring to statistical presentations. The resulting conclusion was that; when RTGS, agency banking, EFT, and mobile banking are solely brought up/down by a single unit, financial performance increased/ decreased by 0.163, 0.27, 0.197, and 0.318 units. At a constant however, financial performance remained at 0.236 out of 5 units. In conclusion, commercial in banks have significantly relied on innovative banking practices to shift their financial performance to new heights. The study has particularly placed both mobile and agency banking at a more central position in driving financial performance to the desired level than other factors including the RTGS and EFT. As part of the recommendations, managements of commercial banks should consider scaling up their adoption of RTGS, agency banking, EFT, and mobile banking as ways of reducing the operating cost of their respective banks reducing banking hall congestions since most of the frequently sought banking services can be achieved without one on one meeting with the bank tellers. Management should also consider adopting more innovative banking practices besides those this research investigated.
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Koori, Jeremiah, Njoki Grace Wanjiku, and Gerald Atheru. "Technological Banking Innovations and Financial Inclusion by Commercial Banks in Nairobi County, Kenya." International Journal of Current Aspects in Finance, Banking and Accounting 2, no. 1 (March 2, 2020): 1–27. http://dx.doi.org/10.35942/ijcfa.v2i1.98.
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Financial inclusion is the provision of financial services at affordable costs to sections of underprivileged and low-income segments of society. Failure to constantly redesign strategies that help the commercial banks adapt to changing business environment may lead to a strategic mismatch between what they offer and what markets demands. The study objective was to assess technological banking innovations and financial inclusion by commercial banks in Nairobi County Kenya. The study was anchored on the theory of financial intermediation, diffusion of innovation theory and Silber’s Constraint theory of Innovation. A descriptive research design and a positivism philosophy were used because the conceptual hypotheses were drawn from existing theories and identified knowledge gaps as founded on the research design. Multiple regression model was employed in this study. For the purpose of this investigation, the target population included all the 42 registered commercial banks operating in Nairobi County, Kenya in the year 2016. Purposive sampling technique was used to determine the sample size. Thirteen (13) selected banks that had successfully implemented technological banking innovations in Nairobi County were purposively sampled for the study. Both primary and secondary data was used in this study. Primary data was collected using questionnaires. Secondary data on mobile bank transactions and mobile phone subscriptions in the banks for the period between 2011 and 2016 was obtained from Central Bank of Kenya, Kenya National Bureau of Statistics and the Banking survey manuals. Questionnaires were administered to randomly selected respondents. The confirmatory test for multicollinearity was done using the Variance Inflation Factor. Data was analyzed using correlation, Goodness of Fit, analysis of variance, F statistic/significance of the study variables and regression of coefficients which were used to draw inferences on the relationship between the study variables. Data was presented using tables and figures. Results of the study indicated that the predictor variables; mobile banking, agency banking, electronic banking outlets and internet banking have an influence on financial inclusion. Correlation results also indicated that mobile banking, agency banking, electronic banking outlets and internet banking were positively associated with financial inclusion. Additionally, the regression findings indicated that mobile banking, agency banking and electronic banking outlets were statistically significant predictors of financial inclusion. However, Internet banking had a significance level of 0.586 which is higher than the conventional threshold of 0.05 which rendered the variable as statistically insignificant in prediction of financial inclusion. The findings concluded that mobile banking, agency banking, electronic banking outlets and internet banking have an influence on financial inclusion with the technological innovations being well adopted by the customers in the respective banks .The study recommended that the banks’ management should make use of these research findings to come up with innovative approaches of improving financial inclusion while maintaining the existing ones in the conduct of their business so as reach more clients with their products and services.
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Alubisia, L’souza Boniface, Wainaina Githii, and Mirie Mwangi. "Effect of Technology Based Financial Innovations on Non-Interest Income of Commercial Banks in Kenya." European Scientific Journal, ESJ 14, no. 7 (March 31, 2018): 337. http://dx.doi.org/10.19044/esj.2018.v14n7p337.
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Technology based financial innovation has had a great impact on the financial industry as a whole over the past few decades. It has presented the banking sector with an opportunity to increase the revenue base. This study intended to identify the impact of technology based financial innovation on non-interest income in Kenyan commercial banks. The study investigated how the adoption of ATMs and Cards, Internet and Mobile Banking and use of Funds Transfer Systems such as RTGS and EFT has impacted the non-interest income of commercial banks in Kenya. Descriptive research design was utilised. The study found that technology based financial innovation has significant effect on the non-interest income earned by commercial banks in Kenya. It recommends all stakeholders in commercial banks to take any investments made towards technology based financial innovation products as a strategy to improve non-interest income
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Mutisya, Maria Mueni, and Gerald Atheru. "Electronic Banking and Financial Performance of Commercial Banks in Kenya." International Journal of Current Aspects 3, no. II (May 31, 2019): 293–304. http://dx.doi.org/10.35942/ijcab.v3iii.24.
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Information technology has changed the traditional ways of doing business to a digital and electronic way that has led to globalization. The banking industry has been forced by the wave of electronic payment system in the business environment to change from its traditional ways such as: long queues as customers waited to be served, delay in the clearing house as representatives of different banks waited to settle their dues and manual work that resulted to errors. The main purpose of the study was to determine the effect of electronic banking on the financial performance of commercial banks in Kenya. The specific objectives were to determine the extend of internet, mobile, automated teller machine and debit/credit card banking adoption and its effect on financial performance. The study covered a period of five years that is from the year 2011 to the year 2015 and adopted descriptive research design. The data collected was analyzed by the use of both descriptive and inferential statistics procedures. Primary and secondary data was collected from the 34 commercial banks that responded leading to a respond rate of 79.04% out of the 43 commercial banks. The trade analysis showed that internet banking was recognized and accepted by the Kenyan commercial banks and the Kenyans as a way of transacting. Electronic banking was found to be positive and significantly related to the financial performance of the commercial banks in Kenya. This was attributed by an R Square of 0.688 for Return On Assets, 0.63 for Net Profit and 0.277 for Return On Equity indicating that the independent variables in the study were able to give information of up to 68.8%, 63% and 27.7% respectively while the remaining 31.2%, 27% and 72.3% could not be explained in the study but could be explained using other variables outside the study. All the independent variables were (internet banking, Mobile banking, Automated Teller Machine banking and Debit/Credit banking) found to be positively and significantly related to the Return On Assets while only mobile banking and internet banking were found to be positively and significantly related to Net Profit since their p Values were less 0.05. Automated Teller Machine banking showed a positive relation that was insignificant with the Return On Equity.The study recommends that, electronic banking should be employed by commercial banks through proper management policies since it has shown improved efficiency and financial performance. For further studies, areas of crime technology, quality of banking services, electronic fund transfer and performing loans should be looked at.
This is an open-access article published and distributed under the terms and conditions of the Creative Commons Attribution 4.0 International License of United States unless otherwise stated. Access, citation and distribution of this article is allowed with full recognition of the authors and the source.
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Ndirangu, Eunice Wangari, David Kiragu, and Antony Ngunyi. "EFFECT OF MOBILE BANKING ON PERFORMANCE OF MICROFINANCE BANKS IN KENYA." European Journal of Business and Strategic Management 5, no. 2 (November 13, 2020): 64. http://dx.doi.org/10.47604/ejbsm.1171.
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Purpose: The purpose of this study was to establish the effect of mobile banking on performance of microfinance banks in Kenya
Methodology: The study adopted positivism philosophy approach and descriptive research design was used. The study also used census survey. The target population was the thirteen Microfinance Banks regulated by the Central Bank of Kenya. The questionnaires were self-administered and primary data was collected from the thirteen regulated microfinance banks. The data was analyzed using the Statistical Package for Social Science. Descriptive and inferential statistics were used for preliminary analysis. Factor analysis was conducted to reduce the number of factors and Kaiser Mayer Olkin and Barlett’s test of Sphericity were tested and total variance explained, scree plot and rotated component matrix were drawn.
Findings: The findings showed that majority of the respondents were in agreement that it is easy to deposit and withdraw cash, transfer funds, apply loan and check the balance using mobile banking. The hypothesis (H02) findings showed that mobile banking had a significant effect on performance of MFBs. The summary model showed that the R was 0.280 and a R square of 0.078. This implied that mobile banking predicted 7.8% of the performance of MFBs. The ANOVA results showed that F value was 4.940 and a p value of 0.030 which indicates that it was statistically significant. After the T test mobile banking beta coefficient was the regression model was generated Y = 2.841+ 0.271MBA.
Unique contribution to theory, practice and policy: The study recommends that MFBs should partner with telecommunication services providers to develop products and services which are customer oriented and easy to use. They should develop strategies on market penetration by creating awareness on the product and services available in the market.
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Kibicho, Nahashon Kairo, and John Mungai. "Mobile Banking Adoption and Financial Credit Accessibility in Wote Sub – County, Makueni County, Kenya." International Journal of Current Aspects 3, no. IV (July 6, 2019): 65–79. http://dx.doi.org/10.35942/ijcab.v3iiv.47.
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Although the financial system is a vital component of the socio-economic development of any nation, most Kenyans lack access to formal financial credit services. This arises due to the cause of putting up bank branches in the rural areas is deemed not economically viable. Most banks have partnered with Mobile Network Operators to help mitigate this problem by introducing the use of Mobile banking (M-banking) technology in accessing vital banking services such as financial credit. However, this effort may not attain success if the factors inhibiting the use of M-banking technology have not been assessed. The purpose of this study was to establish the effect of Mobile banking adoption on financial credit accessibility by residents in Wote sub-county. This study was necessitated by the current emerging trend of accessing financial credit through the Mobile banking system. This study adopted a technology acceptance model to establish the effects of adopting mobile banking and its application in use of banking services among residents of Wote sub-county. The study was guided by the following objectives: To establish the effect of perceived usefulness, perceived ease of use, and perceived risk of using mobile banking technology and financial credit accessibility in Wote sub-county, Makueni county, Kenya. Descriptive research design was employed in which the study population comprised the residents of Wote sub-county. The target population of the study consisted of 137,944 mobile money users across both banked and non-banked population in Wote sub-county and the sample size comprised of 138 participants who were selected through the use of simple random sampling technique. Data was collected using a questionnaire whose reliability was established by use of Cronbach’s Alpha. All items in the questionnaire had a score of above 0.7 which was deemed to be the acceptable threshold. The questionnaires were administered through drop and pick later method. The data collected was processed and analysed using SPSS. Descriptive statistics such as percentages, frequencies, standard deviation and mean scores were used. Afterwards, the research findings were presented using frequency tables, pie charts and bar graphs. Multiple regression analysis was used to analyse and draw inferences from the research data. The results indicated that perceived usefulness of mobile banking technology perceived ease of use of mobile banking technology, and perceived risk of using mobile banking technology were statistically significant in accessing of financial credit. The intervening variable- customers’ attitude- was found to be non-significant. This study recommended that both the banks and MNO’s to continuously invest in product improvement of mobile banking systems to ensure the uptake of mobile credit is enhanced. The study also recommended that the financial service providers should engage in education and extensive customer awareness on use of mobile applications to access mobile credit as well as draw up strategies to reduce the mobile phone operational costs such as the interest charged on mobile loans which are a major hindrance. Further, the banks and MNO’s should increase extra security features in their systems to increase trust in accessing mobile credit. Finally, the service providers should make mobile banking more user friendly for ease of financial credit access by incorporating graphics interface.
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Abdullahi, Hassan Maalim, and Ambrose O. Jagongo. "Financial Innovations and Levels of Risks in Commercial Banks in Kenya." International Journal of Current Aspects 3, no. III (June 26, 2019): 111–21. http://dx.doi.org/10.35942/ijcab.v3iiii.34.
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The commercial banks need to identify the sources of the several financial risks which emanates from financial innovations, as they may affect the banks’ stability. This study sought to determine the influence of financial innovations on level of risks in commercial banks in Kenya. The specific objectives were to determine the relationship between internet banking and financial risks in commercial banks in Kenya; to explore the relationship between mobile banking and financial risks in commercial banks in Kenya; to establish the relationship between agency banking and financial risks in commercial banks in Kenya; and to determine the relationship between electronic cards and financial risks in commercial banks in Kenya. The study adopted a descriptive research design. The target population was all the 42 commercial banks registered with CBK as at December 31st 2016. The unit of observation will be the risk management managers. This was a census study. The study collected both primary data and secondary data. Primary datawas collected from the respondents through a uestionnaire while secondary data was collected from the financial statements. Prior to the actual data collection, the questionnaire was tested for reliability and validity. The collected data was analyzed through descriptive statistics and inferential statistics through aid of SPSS software Version 21. The inferential statistics entailed use of a multivariate regression analysis to establish the relationship between the variables and test hypothesis. The analyzed data was presented using of tables, charts and graphs.
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Wycliffe, Muli, Mulwa Jonathan, Goko Tabby, Ngunjiri Ruth, and Samson Kitheka. "Financial Deepening And Economic Competitiveness In Kenya: The Strides To Being An Economic Power House." INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY 6, no. 2 (October 15, 2013): 817–25. http://dx.doi.org/10.24297/ijmit.v6i2.737.
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Economists have long held the view that financial deepening and economic development are closely intertwined. Kenyas development blue print, Vision 2030, is anchored on this belief and aims to create a vibrant, globally competitive financial sector, envisioning Kenya as a leading financial centre in Eastern and Southern Africa. Using descriptive survey design, this study investigated the state of financial deepening in Kenya and how this enhances the countrys economic competitiveness. Data was collected from a key informant in the four largest banks by asset base that have subsidiaries/branches in other East African countries using a structured questionnaire. It focused on Mobile banking, Agency banking and credit referencing as indicators of financial deepening and established that Kenya has made remarkable strides in financial deepening, which has enhanced the countrys competitiveness through wider access of financial services, reduced operation and transaction costs, product diversification, superior customer experience and reduced loan default rates.
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Koros, Kiplangat Benard. "INFRASTRUCTURE OF ONLINE BANKING IN COMMERCIAL BANKS: CASE OF KERICHO, KENYA." International Journal of Research -GRANTHAALAYAH 5, no. 12 (June 30, 2020): 329–36. http://dx.doi.org/10.29121/granthaalayah.v5.i12.2017.510.
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This research seeks to assess the infrastructure of Online Banking in Commercial Banks: case of Kericho, Kenya. The specific objectives were: To determine the effect of Capacity of IT Infrastructure, to establish the effect of ATM use and to examine the effect of internet access of Online Banking in Commercial Banks in Kenya. Data was collect by Questionnaire, which was adopted from a thesis. Sample size was 154 and target population was 249. Data was analyzed using by descriptive and inferential statistics. Multiple regression analysis method was used in testing relationships among variables. Findings indicate that: there was strong relationship between Capacity of IT Infrastructure and ATM use but a fluctuating, unreliable effect on internet access among the employees in Kericho. ATM use as an infrastructure was the best loaded compared to other two predictors in support of Online Banking. Conclusion: Mobile Network Operation was the least performed. Recommendations: Banks needs to focus on attention at a lower cadre of employees in both private and employees, commercial banks need to carry out training on basic IT knowledge in collaboration with local tea producers, to harness further research of the Capacity of IT Infrastructure.
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Ndungu, John Gichia, and Willy Muturi. "Effect of Diversification on Financial Performance of Commercial Banks in Kenya." International Journal of Current Aspects 3, no. V (October 31, 2019): 267–85. http://dx.doi.org/10.35942/ijcab.v3iv.67.
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Diversification plays a vital role in risk management and consequently financial performance of commercial banks. Diversification mitigates systemic risk facing a commercial bank and thus reduces the probability of bank failure. In Kenya, commercial banks have been diversifying their business by increasingly offering new services such as mobile banking, agency banking, bank-assurance, faceless banking and integrating microfinance in their banking system. Diversification by the commercial banks is premised on the need to enhance financial performance. This has mainly emanated from banking industry having undergone numerous regulations regimes which over the years have affected financial performance of these entities. Empirical literature shows that diversification may not always lead to higher financial performance due to increased overheads and exhausted economies of scale. The study sought to determine the effect of diversification on financial performance of commercial banks in Kenya. The specific objectives of the study were to determine the effect of income diversification on financial performance of commercial banks in Kenya, to examine the effect of geographical diversification on financial performance of commercial banks in Kenya and to examine the effect of product diversification on financial performance of commercial banks in Kenya. Secondary data used by the study was collected for five years period (2013-2017 on annual basis). All the commercial banks were studied. Data was analysed using descriptive and inferential statistics and presented in tables and figures. The study found that Income Source Diversification and Geographical Diversification had a positive effect on the financial performance of the commercial banks while the Product Diversification had a negative impact the financial performance the commercial banks. The findings from the OLS regression analysis revealed that the diversification components studied namely product diversification, geographical diversification and income diversification explain up to 13.3% of the variations in return on assets (R2=0.133) and 18.7% of the variations in return on equity (R2=0.187). The study concluded that financial performance of the commercial banks in Kenya can be accounted for by the diversification strategies that have been implemented. It was further concluded that increased formulation and implementation of additional diversification strategies resulted in significant improvement in the financial performance of the commercial banks. The study recommended that managers at the commercial banks to make formulation and implementation of diversifications as a key organizational priority. Before the adoption of any particular diversification, the management of the commercial banks are econcouraged to first determine the suitability of that particular diversification strategies based on the organization structure, culture and policies and the overall intended outcomes. The study recommends that the government and other regulatory bodies to create favourable policies on the implementation of diversifications in commercial banks. This will ensure that there is effectiveness, efficiency as well as consistency in the use and adoption of diversifications by not only the banks but also other organizations in different sectors.
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Jimale, Hussein Diriye, and Dr Ndede, F. W. S. F. W. S. Ndede. "CREDIT RISK MANAGEMENT AND ACCESS TO BANKING SERVICES BY ISLAMIC BANKING CUSTOMERS IN KENYA." International Journal of Finance 2, no. 6 (April 21, 2017): 75. http://dx.doi.org/10.47941/ijf.159.
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Purpose: This study sought was to assess the effect of credit risk management on access to banking services by Islamic banking customers in Kenya.Methodology: Descriptive research design was adopted. The target population for this study was 225 employees working in the head offices of the selected Islamic banks. Stratified sampling and simple random sampling were used in generating the sample. This study made use of primary data collected using structured questionnaires. The collected data was entered into the Statistical Program for Social Sciences for windows version 20 because of its ability to analyze data easily and accurately. Multiple regression analysis was used to obtain the model for the study. The study results were presented using percentages, tables and chartsResults: The study findings revealed that asset quality as measured by the non-performing loans ratio had a negative and significant effect on access to banking service by Islamic customers in Kenya. Capital adequacy, market structure and technology adoption were found to have a positive and significant effect on access to banking service by Islamic customers in Kenya. It was concluded that the level of credit risk management in Islamic banking where the level of credit risk was high was crucial for the banks in Kenya if they were to expand the level of access to Islamic banking by Islamic customers.Unique contribution to theory, practice and policy: The study recommended that banks needed to develop strategies on how to deal with credit risk by striving to keep the amount of nonperforming loans low. The study also recommended that these banks should expand their capital bases in order to strengthen their resilience and internal strength to withstand losses especially when faced by a crisis. They needed to pursue diversification across individual customers by increasing the breadth of products they coul offer to their customers. The regulators of the market needed to ensure prudent supervision so as to maintaining healthy competition in this market. It was also recommended that banks needed to promote the use of technological innovations within banking area such as internet banking, mobile banking as well as ATM banking by their customers.
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Metre, Kanika. "Using Mobile Banking Services to Improve Financial Access for the Poor: Lessons from Kenya, the Philippines, the United States, Haiti, and India." Policy Perspectives 18, no. 1 (October 17, 2011): 6. http://dx.doi.org/10.4079/pp.v18i0.9351.
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As the number of mobile phone subscriptions has rapidly expanded in developing countries, so too has the use of mobile phones to facilitate small-scale financial transactions around the world. Microfinance experts have recognized these mobile banking services as a means for expanding access to financial services among poor and low-income populations. Innovations over the past few years have proven that mobile network operators and banks can cooperate to create successful business models for mobile banking services. Recognizing this success, this paper further explores the ways in which private sector, public sector, and non-profit sector actors can and should collaborate to meet the financial service needs of the poor through innovations in mobile banking. Case studies from Kenya, the Philippines, the United States, Haiti, and India provide relevant lessons on how these collaborations have succeeded or failed in the past.
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Kipkirui Langat, Daniel, Ronald Bonuke, and Yusuf Kibet. "Mobile Banking Service Quality and Customer Retention: A Moderated Mediation Model of Customer Perceived Value and Perceived Corporate Image." SEISENSE Journal of Management 4, no. 4 (July 20, 2021): 47–61. http://dx.doi.org/10.33215/sjom.v4i4.672.
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Purpose- This study examined the moderating effect of perceived corporate image on the indirect relationship between mobile banking service quality and customer retention via customer perceived value in the Kenyan banking industry Design/Methodology- The study adopted an explanatory research design, employing multistage, simple random and systematic sampling techniques in collecting data from a sample size of 400 consumers of mobile banking services in Kenya using a self-administered questionnaire Findings- The results reveal a significant mediating effect of customer perceived value on the relationship between mobile banking service quality and customer retention. Moreover, the study established that perceived corporate image moderates the relationship between; mobile banking service quality and customer perceived value and mobile banking service quality and customer retention. Finally, perceived corporate image moderates the indirect link between mobile banking service quality and customer retention via customer retention at all levels Practical Implications- These findings underscore the need for the bank’s management and policymakers to develop quality assurance policies and devise value-centered strategies and image-enhancing strategies to enhance customer retention. Originality/Value - The study’s findings bring new critical knowledge concerning the indirect effect of customer perceived value and perceived corporate image on the study variables.
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Mburu, Irene Muthoni, Lucy Wamugo Mwangi, and Stephen M. A. Muathe. "Credit Management Practices and Loan Performance: Empirical Evidence from Commercial Banks in Kenya." International Journal of Current Aspects in Finance, Banking and Accounting 2, no. 1 (May 31, 2020): 51–63. http://dx.doi.org/10.35942/ijcfa.v2i1.105.
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Commercial banks in Kenya as per the World Bank report were recording higher non-performance in loans over the study period than the standard globally in spite of Kenya having the most stable and developed banking system in East and Central Africa region. Commercial banks non-performing loans for five years from 2015 to 2018 averaged eleven percent which was higher than the recommended rate of one percent. In Kenya, commercial banks’ non-performing loans remain higher than the recommended rate which could be due to inadequate credit management practices. The study therefore aimed at examining the effect of credit management practices on loan performance of commercial banks in Kenya. Specifically, the study sought to establish the effect of debt collection policy, client appraisal and lending policy on the loan performance of commercial banks in Kenya. The underpinning theory of the study was the 5Cs model for credit. The study used explanatory research design and the research philosophy adopted was positivism. The target population was 44 commercial banks in Kenya and a census approach was used. Both primary and secondary data were used. Primary data was collected through structured questionnaires and related to credit management practices while secondary data was obtained from review of existing bank loan records in relation to loan amount advanced and non-performing loans for a period of four years from 2015-2018. The data collected was analyzed using both descriptive and inferential statistics with the help of SPSS version 22. The study found out that debt collection policy and lending policy had a positive significant effect on loan performance of commercial banks in Kenya. However, client appraisal had no significant effect on loan performance of commercial banks in Kenya. Therefore, the study concluded that commercial banks’ loan performance could be largely attributed to the efficiency of the credit management practices put in place at the institutions. The study recommended that commercial banks to regularly evaluate and update practices relating to debt collection policy, client appraisal and lending policy that are capable of ensuring that credit risks are identified and recorded from departmental level to the institution at large. This is vital in light of technological innovations in the banking sector like mobile lending that may limit commercial banks’ ability to evaluate and manage credit using traditional methods.
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Patrick Kibati; John Kipkorir Tanui, Gladys Chepngetich Tonui;. "The Effect of Product and Service Innovations on the Financial Performance of Commercial Banks in Kenya." Editon Consortium Journal of Business and Management Studies 2, no. 1 (August 31, 2020): 56–68. http://dx.doi.org/10.51317/ecjbms.v2i1.148.
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The objective of this study was to establish the effect of product /service innovations on the financial performance of commercial banks in Kenya. The 40 commercial banks was the population of this study which were in operation in Kenya as at December, 2017. Both primary and secondary data were used in the study. Explanatory research design was used. Questionnaires were used to gather primary data. Secondary data was collected from Central Bank annual report to validate communicative and validity of primary data. Quantitative analysis in the research was facilitated by Statistical Package for Social Sciences (SPSS), the completed questionnaires was examined and the information for each item was further processed and analysed. The results obtained was further presented in charts and tables. Regression and correlation analysis were used to study the relationship between the dependent and the independent variables of the study. These were employed to analyze the data and find out whether financial performance of commercial banks was influenced by banks innovations. The results showed that most commercial banks have concentrated on their profits by creating new products and services which have minimized their operational costs. This study used Cronbach Alpha test of internal consistency to analyze the accuracy of the research tool based on pilot data. The study recommended that banks should consider incorporating the new technology as it will increase the firms’ performance and to ensure their new products and services, are readily available in the market. The study recommended that the banking sector ought to continue investing on more innovative delivery channels since this improves banks capability to regulate expenditure. These will in turn, facilitates reduction in cost in every unit of service thus improved return on assets to financial institutions effective monitoring of accounting and auditing. Financial institutions should ensure that the banking innovations are well secured for customers to have confidence in using mobile banking and internet banking.
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Kahunyo, Margaret Nyakio, and Paul Waithaka. "Change Management Practices and Performance: A Case of Commercial Banks in Nyeri County, Kenya." International Journal of Current Aspects 3, no. VI (November 20, 2019): 101–23. http://dx.doi.org/10.35942/ijcab.v3ivi.81.
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Over the past half-decade, a lot of change has been experienced in the banking sector. This ranges from regulatory reforms, technological shifts especially on mobile and internet banking, intensified financial innovations, internalization and heightened competition from other players. Although some banks may have recorded good performance in the period under assessment, most of the commercial banks have recorded dwindling performance. This study was interested in determining the effect of change management practices on performance of commercial banks in Nyeri County, Kenya. Specifically, the study aimed to establish the effect of stakeholder involvement on performance of commercial banks; to establish the effect leadership on performance of commercial banks; to assess the effect of organisational learning on performance of commercial banks, and to determine the effect of communication on performance of commercial banks in Nyeri County, Kenya. The study was guided by McKinsey 7-S Change Model, Kotter's Eight Step Model, Resource Dependence Theory, and Kurt Lewin’s Model. A descriptive survey research design was utilised. The target population comprised of 15 banks in Nyeri County, Kenya. The study used a census approach. The study used purposive sampling to select branch managers, accountants, credit managers, and marketing managers of all the commercial banks as the choice class of respondents. The study considered non-financial performance of the banks for five (5) financial years 2012-2017. Primary data was collected through questionnaires while secondary data was extracted from the financial and management reports and corporate handbooks. Cronbach’s Alpha Reliability test was used to test the instruments for reliability while expert opinion assessed the validity status of the instrument. The study used descriptive and inferential analysis. The study targeted all the commercial banks in Nyeri County, Kenya. The study targeted sixty respondents who were the top management of the commercial banks. Questionnaires were used as the main tool of data collection in the study. The researcher used the drop and pick method to administer the questionnaires. The data was coded and entered into Statistical Package for Social Science (SPSS) where both descriptive analysis and inferential analysis of multiple regression analysis was done. The study found that stakeholder involvement had a positive and significant effect on performance of commercial banks in Nyeri County, Kenya. Leadership had the largest positive effect on performance while organization learning had the least but positive effect on the performance of commercial banks in Nyeri County, Kenya. The study concluded that communication had significant and positive effect on performance of banks in Nyeri County, Kenya. As established from the multiple regression analysis the results affirmed that stakeholder involvement, leadership, organization leaning and communication had significant effect on performance of commercial banks in Nyeri County, Kenya. The study recommends improvement of organization learning which was found to be deficient through development of mentorship programs and up scaling the level of employee training and development.
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Nthama, Sebastian Nzau. "Effect of Board Social Capital on Innovativeness in the Banking Industry in Kenya." European Scientific Journal, ESJ 13, no. 31 (November 30, 2017): 353. http://dx.doi.org/10.19044/esj.2017.v13n31p353.
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Extant literature on impact of board capital on firm innovativeness, was prior to this research inconclusive, with some studies showing positive, negative or no effect. Anchored on agency, resource dependence and social capital theories, the researcher sought to determine impact of social capital on innovativeness in banks. Kenya has experienced innovations in the banking sector driven by mobile technologies. The researcher hypothesized that social capital positively impacts firm innovativeness. Independent variables were director interlocks, status and prestige of the directors and presence of personal or other affiliations between directors and the bank or chief executive. Two control variables were added, to mitigate their confounding effect on bank innovativeness. A causal research design was selected and purposive sampling undertaken to choose respondents to a questionnaire. Unit of analysis was boards of banks. 32 questionnaires were returned, a response rate of 74%. Data was analyzed using SPSS, after testing for assumptions made. The study found there was statistically significant relationship between director interlocks and status and prestige of the directors and innovativeness of banks. This study resolved disagreement in extant literature, concluding that board interlocks and board status and prestige were found to drive innovativeness. There was no statistically significant relationship between presence of personal or other affiliations between the directors and the bank or chief executive and bank innovativeness. This study benefits management, in providing a selection criteria for directors of entities focusing on innovativeness. Major limitation of the study is the narrow focus on banking sector impacting generalization of the study
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Mhella, Deogratius Joseph. "The Development of Mobile Money and the Politics of Financial Inclusion in Tanzania." International Social Sciences Review 1 (April 30, 2019): 25–42. http://dx.doi.org/10.37467/gka-socialrev.v1.2088.
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This paper analyses the development of mobile money in Tanzania and the politics of financial inclusion that enhanced it. Mobile money has played a significant part in reaching the financially unreached and excluded people overtaking banking and other financial services in Tanzania. There is no doubt that mobile money emerged at a time when financial exclusion was a major issue, and that the advent of mobile money was opposed by the banks who thought that it was entering the money business, and that the banks were in a better position to do money business better than any other institutions. For this reason, it is crucial to understand the development of mobile money and the politics of financial inclusion that allowed it to succeed. I have chosen the case study of Tanzania because not only that mobile money has thrived there, but also mobile money as we perceive it today was firstly invented by the e-Fulusi, a Tanzanian company, and failed before it was relaunched in Kenya by MPesa and succeeded. Moreover, the development of mobile money and the politics of financial inclusion have proven their importance in fighting financial exclusion and in increasing access to formal financial services for the poor, which is key to economic growth and poverty alleviation.
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Jesse Nakhumwa, Ndubi. "Adoption of E-commerce Payment Systems by Commercial Banks in Kenya." INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY 9, no. 2 (April 30, 2014): 1600–1622. http://dx.doi.org/10.24297/ijmit.v9i2.2853.
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E-commerce, which is combination of traditional commerce and Internet, has brought dramatic changes of the way business transactions are conducted prompting banks, as the intermediary financial instruments, to adopt and adapt electronic payment systems (EPS). These e-payment systems which include debit and credit cards, electronic fund transfer, mobile payments platforms and internet banking are already in use in Kenya market. Importantly to note is the fact that electornic payment instruments are not used with equal intensity even in developed countries due to various reasons. The research thus is focused on identifying key drivers for adoption of EPS in Kenya market by banks.The researcher identified major variables affecting adoption of EPS which included security status, perceived level of trust, infrastructure capability to handle the system, marginal cost reduction and perceived associated benefits. A descriptive census survey of all the 43 banks was then done through a structured questionnaire. With a id of technology acceptance model and DeLone & McLean Information System Success model, the data collected was empirically analysed and results presented.With different intensity, the findings of the study revealed that many banks in Kenya are implementing EPS platforms. The driving forces for the adoption are the factors identified in the conceptual framework of this study. Bank respondents successfully did the rating of these factors. Therefore, the study recommends for a concerted effort amongst EPS key players to streamline operations in their area of concern. They should establish policies and legal framework good for electronic transactions as well as building sound telecommunication infrastructure countrywide. Again, this study is just but a stepping-stone to a better analysis that will unlock the potential of e-payment systems. The researcher encourages both academicians and practitioners to critique the study findings.
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Nyangosi, Richard, Kennedy O. Nyariki, and Samuel Nyambega Nyang’au. "New Adaptation Linkages." International Journal of Information Technology Project Management 3, no. 2 (April 2012): 62–77. http://dx.doi.org/10.4018/jitpm.2012040104.
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Web technology is transforming all businesses into information-based activities and the rate of technological change is so high that emerging electronic commerce is already making fundamental changes in the economic landscape, affecting every aspect of how business is and will be conducted. There is substantial evidence to suggest that e-banking is being embraced by financial institutions in developed and emerging markets to the extent that explosive growth is almost at hand. This paper explores the adoption linkages in customer perceptions, preferences, and barriers to the adoption of banking technology in Kenya. The data for this study has been collected from bank customers in using well structured and pre-tested questionnaires. The result indicated that necessity perception is positive and ATM, Mobile and Internet banking were mostly preferred compared to others whilst negative linkage was observed between barriers and adoption as Security, bank lag in adoption and unawareness were identified as the most reported barriers to adoption. It means that positive link enable adoption while negative link distract adoption. The findings implicate banks and other financial institutions to increase the campaigns which may develop positive customer perceptions and preferences at the same time look for alternatives of reducing the possible barriers posing the banking technology.
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Dzombo, Gift Kimonge, James M. Kilika, and James Maingi. "The Mediating Effect of Financial Inclusion on the Relationship between Branchless Banking Strategy and Performance of Commercial Banks in an Emerging market Context: The Case of Kenya." International Journal of Economics and Finance 10, no. 7 (June 25, 2018): 161. http://dx.doi.org/10.5539/ijef.v10n7p161.
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Since 1990 to date, a lot of banking innovation has taken place in order to improve commercial banks financial performance. Branchless banking which involves the use of agency banking and electronic banking channels in the distribution of banking products and services is one such innovation. This study investigated the role of financial inclusion on the relationship between branchless banking strategy and financial performance of commercial banks in Kenya. The specific objectives of the study were to analyze the effect of agency banking and electronic banking channels on the financial performance of commercial banks in Kenya. The study also aimed at determining the mediating effect of financial inclusion on the relationship between branchless banking and financial performance of commercial banks in Kenya. The study adopted a correlational research design. A survey of all the 42 licensed commercial banks in Kenya was done. Both primary and secondary data on branchless banking and financial performance of banks was obtained from the commercial banks and Central Bank of Kenya banking annual supervision reports respectively. Return on Assets (ROA) was used as the main indicator of commercial banks financial performance. The amount of investment in agency and electronic banking was used as indicators for agency and electronic banking. Data analysis was done using SPSS and STATA statistical software. Study findings indicated that when used in isolation; both agency and electronic banking had a significant negative effect on the financial performance of commercial banks. However when agency and electronic banking channels were used together as a multichannel strategy, the effect on bank’s financial performance was found to be positive and significant at the 95 percent significance level. Study findings also indicate that the strength of the relationship between branchless banking strategy and financial performance of commercial banks in Kenya depends on the level of financial inclusion. The study recommends that for positive returns, commercial banks should invest in both agency and electronic banking as a multichannel strategy since these channels are complimentary to each other and calls on the government to come up with policies to foster financial inclusion within the banking industry in order for the industry to achieve maximum returns from branchless banking strategies.
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Suhartanto, Dwi, David Dean, Tuan Ahmad Tuan Ismail, and Ratna Sundari. "Mobile banking adoption in Islamic banks." Journal of Islamic Marketing 11, no. 6 (September 23, 2019): 1405–18. http://dx.doi.org/10.1108/jima-05-2019-0096.
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Purpose This paper aims to examine mobile banking adoption in Islamic banks by integrating technology adoption model (TAM) and Religiosity-Behavioural Intention Model. Design/methodology/approach This study uses a sample of 300 mobile banking customers of Islamic banks from West Java Province, Indonesia. Partial least square was applied to assess the association between perceived usefulness, perceived ease-of-use, religiosity, satisfaction, and adoption. Findings The results of this study disclosed that the integration of TAM and Religiosity-Intention model provides a more complete explanation of Islamic bank consumers’ adoption of mobile banking. Besides perceived usefulness and perceived ease-of-use, the results of this study emphasise the importance of religiosity in mobile banking adoption. Practical implications This study offers an opportunity for Islamic bank managers to increase the adoption of their mobile banking services. To increase the adoption of mobile banking services, Islamic banks must not only provide an application that is useful and easy to use but also consider the customer’s religiosity. All of their mobile banking marketing strategies should focus on providing high-quality mobile service while ensuring the bank’s operations are compliant with the Islamic law. Originality/value This study is the first attempt to integrate TAM and Religiosity-Intention Model to assess mobile banking adoption.
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Abubakar, Abbas Said, and Dr Josiah Aduda. "ISLAMIC BANKING AND INVESTMENT FINANCING: A CASE OF ISLAMIC BANKING IN KENYA." International Journal of Finance 2, no. 1 (January 23, 2017): 66. http://dx.doi.org/10.47941/ijf.42.
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Purpose: The purpose of this study was to establish the effect of Islamic banking on investment financing in Islamic banks in Kenya.Methodology: This study employed descriptive survey design. The population of this research consisted of 8 commercial banks offering Shariah compliant products. The study used secondary data for the period 2009 to 2012. Data was analyzed using Statistical Package for Social Sciences (SPSS) and results were presented in frequency tables and figures. The data was then analyzed in terms of descriptive statistics like frequencies, means and percentages.Results: The study findings indicated that there were various Islamic banking products that Islamic banks used to finance their investments. This included motor vehicle financing, mortgage financing, asset financing, real estate financing, trade financing and SME financing. The study also indicated that there were various modes of financing used by Islamic banking such as profit and loss sharing, Ijara and murahaba. Regression results revealed that motor vehicle financing was statistically significant in explaining loans advanced to customers in Islamic banks. However mortgage financing, asset financing, real estate financing, trade financing and SME financing were not statistically significant in explaining loans advanced to customers in Islamic banks but they were positively correlated.Unique contribution to theory, practice and policy: The study recommends that the management of the banks to get well equipped and competent employees on Islamic banking products as most Islamic banks are currently managed by people who have been educated and trained in the conventional banking system. Thus, more time may be required for the unique characteristics of Islamic financial instruments to be completely accepted and understood by both bank personnel and customers. It is also recommended that the terms and conditions of acquiring a loan be made more appealing and considerate for more investors to approach the banks for assistance as the Shari`ah restricts the type of businesses for which Islamic banks can provide financing.
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Dzombo, Gift Kimonge, James M. Kilika, and James Maingi. "The Effect of Branchless Banking Strategy on the Financial Performance of Commercial Banks in Kenya." International Journal of Financial Research 8, no. 4 (September 14, 2017): 167. http://dx.doi.org/10.5430/ijfr.v8n4p167.
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The Banking sector acts as the life blood of modern trade and economic development. Commercial banks influence, facilitate and integrate the economic activities like resources mobilization, poverty elimination, production, and distribution of public finance. The financial performance of commercial banks has great implications in the financial sector and in the country at large, and will still remain an important subject of concern by all the stakeholders in the banking industry. In the last two decades, a lot of banking innovation has taken place in order to improve commercial banks financial performance. Branchless banking which involves the use of agency banking and electronic banking channels in the distribution of banking products and services is one such innovation. This study purpose was to evaluate the effect of branchless banking on the financial performance of commercial banks in Kenya. The specific objectives of the study were to analyze the individual effects of agency banking and electronic banking channels on the financial performance of commercial banks in Kenya and the combined effect of both agency and electronic banking on the financial performance of commercial banks in Kenya. The study adopted an exploratory research design. A survey of all the 42 licensed commercial banks in Kenya was done. Both primary and secondary data on branchless banking and financial performance of banks was obtained from the individual commercial banks, Central Bank of Kenya banking annual supervision reports respectively. Return on Assets (ROA) was used as the main indicator of commercial banks financial performance. The amount of investment in agency and electronic banking was used as indicator for agency and electronic banking. Data analysis was done using SPSS and STATA statistical softwares. Descriptive statistics, diagnostic tests and tests of hypothesis were done. Data was presented using tables and charts. Study findings indicated that when used in isolation; both agency and electronic banking had a significant negative effect on the financial performance of commercial banks at 5 percent significance level. However, when agency and electronic banking channels were used together as a multichannel strategy, they had a significant positive effect on bank’s financial performance at 5 percent significance level. The study recommends that for positive returns, commercial banks should invest in both agency and electronic banking as a multichannel strategy since these channels are complimentary to each other.
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Nyasha, Sheilla, and Nicholas M. Odhiambo. "Banking sector reforms in Kenya: Progress and challenges." Corporate Ownership and Control 10, no. 1 (2012): 88–96. http://dx.doi.org/10.22495/cocv10i1art8.
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This paper gives an overview of the banking sector in Kenya; it highlights the reforms since the country‟s independence in 1963; it tracks the growth of the banking sector in response to the reforms implemented over the past four decades; and finally, it highlights the challenges facing the banking sector in Kenya. The country‟s banking sector consists of more than 40 commercial banks, with the Central Bank of Kenya, which is the country‟s central bank, at the apex. Since the 1980s, the Kenyan government has implemented a number of banking sector reforms – in order to safeguard and improve the banking sector. The response to these reforms by the banking sector has been varied. As a result of these reforms, there has been a shift in the dominance from the State-owned banks to the private commercial banks. There has also been an improvement in the Central Bank‟s oversight of the financial institutions, and an enforcement of the banks‟ capital-adequacy requirements. By the standards of African countries, Kenya currently has one of the most developed banking systems in Africa. The country has enjoyed a substantial bank-based financial sector development over the years, and its institutional framework has also grown stronger. However, like many other developing countries‟ financial systems, the Kenyan banking system still faces wide-ranging challenges, such as high interest rate spreads and financial inclusion challenges
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Le, Tam T., Ha N. Mai, and Duong T. Phan. "Fintech Innovations: The Impact of Mobile Banking Apps on Bank Performance in Vietnam." International Journal of Research and Review 8, no. 4 (April 24, 2021): 391–401. http://dx.doi.org/10.52403/ijrr.20210446.
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This paper is aimed at analyzing the impact of FinTech innovations on bank performance across mobile banking applications in Vietnam. Using the longitudinal panel data from 2010-2019 (with 220 observations) of 22 local commercial banks in Vietnam. Multivariate panel regression is chosen to experimentally test the research hypotheses. This research paper is one of the first quantitatively investigating the effects of fintech innovation (mobile banking apps) on bank performance in Vietnam. In addition, studies on financial indicators are shown quite comprehensively in the period 2010-2019. Our empirical study has shown the following results: (i) FinTech innovations’ positive impact on bank performance in Vietnam; (ii) Banks’ adoption of mobile banking technologies positively impacted banks’ fee-based income, consumer loans and money market deposits; (iii) The effect of mobile technologies on financial performance was much stronger for small banks than large banks; (iv) As for the balance sheet liabilities aspect, the money market fund of small banks is positively affected by the mobile banking application; (v) In terms of balance sheet assets, consumer loans by small banks are positively affected by the mobile banking application while large banks are not; (vi) GDP per capita has a positive effect on the ROE of both small and large banks; (vii) Mobile phone penetration rates positively affected bank ROA and ROE and its effect was larger on small banks. From the findings, key recommendations to Vietnamese commercial banks to improve bank performance in the context of an increasingly technological development are to: (1) Increase investment in mobile banking apps and the entire mobile banking technology; (2) Increase investment in financial technology, focus more on mobile banking users and the entire mobile banking services; (3) Take advantage of the technical support and consultancy of international organizations and bilateral cooperation with other countries' authorities in management of Fintech businesses; (4) Learn from commercial banks in other countries to draw experiences, thereby develop in own context. (5) Training human resources for the finance and banking industry to not only have professional knowledge and ability to analyze data, but also have to be proficient in operating digital technology. Keywords: Fintech Innovations, mobile banking apps, bank performance, Vietnam, theories of Technological Innovation.
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Ouma, Stephen Otieno, and Fredrick W. S. Ndede. "Adoption of Digital Banking Technology and Financial Performance of Commercial Banks in Kenya." International Journal of Current Aspects in Finance, Banking and Accounting 2, no. 1 (May 15, 2020): 42–50. http://dx.doi.org/10.35942/ijcfa.v2i1.108.
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Commercial banks play a leading role in the economic development of a country and this role of can be achieved only if the banks are stable. Digital banking technology has thus emerged as a way through which the commercial banks can be able to improve their financial performance by enhancing retail and corporate banking activities. From the inception of digital banking, banks have improved their networks in areas of deposits, withdrawals and other banking activities. However, despite the innovative ideas in digital banking, there still exists gaps as some banks still fail and face imminent collapse. The objective of this study was to establish how digital banking technology innovations affects the financial performance of commercial banks. The study took a descriptive survey design and was driven by three objectives namely; determining the effect of access to digital banking technology, turnaround time and digital banking technology costs on financial performance. This study was anchored on financial intermediation theory, innovation diffusion theory and modern economics theory. A questionnaire was used to collect primary data over a target population of 42 commercial banks in Kenya. The study involved a census of the commercial banks in Kenya as at September 2018 and encompassed collection of data through self-administered questionnaires targeting the finance and IT managers of the banks in their headquarters in Nairobi. The data collected was analysed using a descriptive method. The responses were tabulated, coded and processed by use of a computer statistical package for social scientists. The findings of the study were analysed and presented using statistical methods including pie charts and bar graphs and frequency tables. From the findings and summary, the study concluded that the ease of access to digital banking through digital-banking technology innovations had a positive influence on the financial performance of commercial banks in Kenya. The study also concludes that the turnaround time of digital banking technology innovations had a positive impact on the financial performance of commercial banks in Kenya with many of the banking institutions recording high amount of deposits and improved loan values thus creating an opportunity of increasing their customer base.
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Githae, Lilian, James Gatauwa, and Felix Mwambia. "Factors Affecting Uptake of Agency Banking Services Among Customers in Rural Kenya: A Case of Narok County." European Scientific Journal, ESJ 14, no. 16 (June 30, 2018): 224. http://dx.doi.org/10.19044/esj.2018.v14n16p224.
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The objective of this study was to analyze factors affecting uptake of agency banking services among customers in rural Kenya. Specifically, the study sought; to examine the effect of fraud on uptake of agency banking services among customers in Kenya; to determine the extent to which skills of agents affect uptake of agency banking services among customers in Kenya; To establish the effect of location on uptake of agency banking services among customers in Kenya and to find out how confidentiality affect agency banking services uptake among rural customers in Kenya. A multivariate regression model was applied to determine the relative importance of each of the four variables. The findings indicated that bank agent skills, location and confidentiality were found to be statistically significant in explaining uptake of agency banking services. Banks should create awareness to the public that the bank agent’s premises adheres to standard security measures and should also hire security services from security firms to transport cash to and from the agents where necessary. Banks should also train the agency banking agents on how to detect fake money and fraud. The study revealed that agents’ skills affected uptake of agency banking services by rural community in Narok County. The study recommends banks to offer training to agents before they start providing specific services on behalf of the banks to improve their customer handling skills and increase the uptake of the agency banking services.
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Giorgis Sahile, Solomon W., Daniel Kipkirong Tarus, and Thomas Kimeli Cheruiyot. "Market structure-performance hypothesis in Kenyan banking industry." International Journal of Emerging Markets 10, no. 4 (September 21, 2015): 697–710. http://dx.doi.org/10.1108/ijoem-12-2012-0178.
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Purpose – The purpose of this paper is to test market structure-performance hypothesis in banking industry in Kenya. Specifically, the structure-conduct-performance (SCP) and market efficiency hypotheses were examined to determine how market concentration and efficiency affect bank performance in Kenya. Design/methodology/approach – The study used secondary data of 44 commercial banks operating from 2000 to 2009. Three proxies to measure bank performance were used while market concentration and market share were used as proxies for market structure. Market concentration was measured using two concentration measures; the concentration ratio of the four largest banks (CR4) and Herfindahl-Hirschman Index, while market share was used as a proxy for efficiency. The study made use of generalized least square regression method. Findings – The empirical results confirm that market efficiency hypothesis is a predictor of firm performance in the banking sector in Kenya and rejects the traditional SCP hypothesis. Thus, the results support the view that efficient banks maximize profitability. Practical implications – The study provides insights into the role of efficiency in enhancing profitability in commercial banks in Kenya. It has managerial implication that profitable banks ought to be efficient and dispels the notion of collusive behavior as a precursor for profitability. Originality/value – The paper fills an important gap in the extant literature by proving insights into what determines bank profitability in banking sector in Kenya. Although this area is rich in research, little work has been conducted in the developing economies and in particular no study in the knowledge has addressed this critical issue in Kenya.
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Bagaria, Sandeep. "Inspiring mobility for banking enterprises." Journal of Innovation Management 1, no. 2 (December 31, 2013): 18–20. http://dx.doi.org/10.24840/2183-0606_001.002_0004.
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Mobile banking is taking the world by storm, accounting for over 590 million users worldwide, which is expected to double to exceed 1 billion by 2017. Today consumers will not bank with a Bank that does not have internet banking. Tomorrow consumers will not bank with a Bank that does not have mobile banking.In order for banks to create a successful mobile banking strategy, banks need to do more than just provide their internet banking on the mobile phone. They have to focus on innovation and user experience to deliver leading edge mobile banking applications.This article describes how banks in Asia Pacific have leveraged innovation and user-experience to differentiate themselves from their competitors.
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Sha, Nadia, and Shariq Mohammad. "Virtual banking and online business." Banks and Bank Systems 12, no. 1 (March 24, 2017): 75–81. http://dx.doi.org/10.21511/bbs.12(1).2017.09.
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Banks play a crucial role in promoting online businesses. Even though e-shoppers have the option of cash-on-delivery, which seems to be secure and trustworthy, still there is an urge for the e-payment schemes, which can only be provided through banks. Banks act as strong and trustworthy intermediaries in the online transactions and they provide a bold opening in the online business. At present, banks have e-payment systems like Internet banking, electronic fund transfers (NEFT/RTGS), plastic money (credit card &amp; debit card) and mobile banking. These systems provide payment to online transactions like online purchases of products, mobile recharges, hotel booking, ticket booking, etc. by considering all types of security measures. For the real working of these e-services, the need of apt infrastructures is an inevitable feature. This paper examines the efficient utilization of mobile banking by the bank customers who have all the infrastructures for availing the same. The results showed that the majority of the sample customers selected for the study owned a mobile but only few of them use a mobile as their mode of access to banks. They also revealed that the people were comparatively well aware of mobile banking, but its usage level was very low. The mostly used e-settlement with mobile banking was for mobile top-up by urban area customers and rural area customers and there was no significant difference between the urban area and rural area customers regarding the utilization of mobile banking. Keywords: virtual banking, mobile banking, online business, inter-bank mobile payment system (IMPS). JEL Classification: L86, L81
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Ongera, Faith Kwamboka, and Fredrick Ndede. "Shariah Banking and Financial Performance of Selected Commercial Banks in Kenya." International Journal of Current Aspects 3, no. VI (November 8, 2019): 50–66. http://dx.doi.org/10.35942/ijcab.v3ivi.78.
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Financial performance is important among banking institutions. The ability to reinvest earnings and aggressively compete for the market share in the business environment is determined by the level of profits. In recent past, Kenyan commercial banks financial performance has declined due to a number of factors ranging from decline in PAT, interest capping, increased competition and rise in non-performing loans. This has created a need for income diversification where commercial banks are diversifying into shariah banking so as to attract investors with an interest in shariah compliant products and services. The main research objective was to investigate shariah compliant banking effects on the selected Kenyan commercial banks in terms of financial performance. The independent variables employed in the study were liquidity, efficiency and asset quality as determinants of financial performance of commercial bank. There are major gaps in the financial performance literature regarding shariah compliant banking. Minimal research studies have been carried on financial performance comparison between commercial and shariah compliant banks in Kenya. In order to achieve the research objectives, descriptive research approach was employed in the study. A census study was carried out; secondary data from relevant central bank data will be used. The population was the four commercial banks operating shariah banking in Kenya. Secondary data from 2013 to 2017 was obtained from the central bank website and the audited financial statements of the selected licensed commercial banks operating shariah banking in Kenya. Data analysis was achieved through use of descriptive, correlation and regression methods. Data was processed through Statistical Package for Social Science software (SPSS). Data was analyzed using descriptive and inferential analysis and presented using charts and tables. Ratio analysis and trend analysis was used in the study. The study aimed at using the framework of innovation diffusion theory to suggest a model for adoption of shariah banking in the Kenyan banking industry, modern portfolio theory to explain the importance of diversified portfolio in the Banking Sector and Agency Theory. The study found commercial banks’ performance was as a result of that Shariah banking ratio then by liquidity ratio, efficiency ratio, asset ratio, and finally bank size. Bank size had a ratio of 0.0128, expense management ratio 0.0131, efficiency ratio 0.0024, Asset quality 0.0006, liquidity ratio 0.0120 and sharia banking ratio was 0.0025. It was revealed by the research that commercial banks’ adoption of shariah banking positively influenced their financial performance. This research recommends that same studies to be carried out in Africa’s Eastern part to compare since shariah banking’ concentration is on the Asian and West Africa countries. The research recommends that commercial banks management take advantage of its existing branch networks to open shariah banking alongside its core business in tapping the potential new clientele.
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Changchit, Chuleeporn, Ravi Lonkani, and Jomjai Sampet. "Determinants of Mobile Banking Adoption." Journal of Global Information Management 26, no. 4 (October 2018): 158–84. http://dx.doi.org/10.4018/jgim.2018100109.
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With a rapid increase in smart phone users, mobile banking is becoming an available banking channel that allows consumers to perform banking transactions at their own convenience. However, not all customers are ready to embrace this new channel of services. It is crucial for banks to fully understand the preferences of their customers, especially which factors play an important role in encouraging or discouraging customers from using this banking channel. It is also important to further investigate whether their customers' perceptions on mobile banking is influenced by culture. This article aims at comparing the mobile banking perceptions between the consumers in the U.S. and in Thailand. The research findings reveal the various factors that influence mobile banking adoption for these two nationalities. The results should help banks gain an understanding of these factors, and thus direct their efforts to develop features that satisfy the needs of their target customers and alter their business model to promote factors that have a positive influence on mobile banking adoption.
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Moser, Florian. "Mobile Banking." International Journal of Bank Marketing 33, no. 2 (April 7, 2015): 162–77. http://dx.doi.org/10.1108/ijbm-08-2013-0082.
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Purpose – Though Mobile Banking has raised high expectations in research and practice, it neither experienced broad adoption nor allows it banks to realize additional earnings yet. By analyzing the discourse in form of publications in research and practice as a proxy for the subsequent actual adoption, the purpose of this paper is to examine whether Mobile Banking is just a fashionable concept and whether academics or practitioners are leading the debate on Mobile Banking. Design/methodology/approach – On the basis of academic and practical Mobile Banking publications from the last 13 years, discourse analysis was applied to examine patterns in the Mobile Banking literature and thus debate in research and practice. Previous patterns have been extended to examine whether the Mobile Banking discourse has fashionable aspects indicating a transient hype or whether it indicates long-term institutionalization. By differentiating between academic and practical publications, the different roles have been analyzed. Findings – Mobile Banking discourse shows a positive trend indicating a broader adoption in nearer future which should encourage both researchers and practitioners to stay involved in the topic. Temporary developments and the emergence of technological innovations (e.g. Universal Mobile Telecommunications System, iPhone) created a fashionable hype around Mobile Banking showing that the acceptance is probably linked to developments like convenience, usefulness or availability. New phenomenon like social networks thus should be integrated in future considerations regarding Mobile Banking. Originality/value – First study about the fashionable aspect in Mobile Banking literature discourse. Combination of conceptual work, literature review and methodological approach in form of regression and pattern analysis. Applies the method of a former work and extends the methodology by the characteristics of fashionable innovations.
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Hadi, Jalal, Wei Huafei, Muhammad Khan, Mohammad Abdulrab, and Zhao Yan. "THE IMPACT OF MOBILE BANKING APPLICATION ON CLIENT INTERACTION WITH YEMEN BANKS." International Journal of Business Strategies 6, no. 1 (June 16, 2021): 58–68. http://dx.doi.org/10.47672/ijbs.729.
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Purpose: The purpose of the study is to analyse the impact of a mobile banking application on client interactions with banks in Yemen.
Methodology: Data were collected using structured questionnaires. The Statistical Package for the Social Sciences (SPSS) was used for statistical analysis. Descriptive statistics and correlation values were used to report the results. This paper coverers the barriers and the factors that might affect badly on the performance of the mobile banking services in the Yemen banks industry.
Findings: The findings of this study show that the traditional method of banks is changing; the entire system of banks has been changed from the traditional old way to the advanced way, and The traditional way is a paper-based banking provider while the new way is to use the technology as a method to enhance the performance of the banks such as the usage of mobile banking. In addition, the result of this paper is that there is a link between the user stratification and supportive access factor, and they are related to mobile banking. However, recently mobile banking is being adopted scientifically in recent years as most of the systems are become computerized and mobile phones are being in the market more than computers. Although, the emerging new technology to the banks' services market is exposed to barriers to the adoption of mobile banking services. The results of this current study will provide insights into the factors that affect the successful uptake of mobile banking services among clients of Yemeni banks.
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Zhu, Xiaoning, Rui Yan, and Tian xing Xu. "An Integrated DEMATEL-ANP Approach for Mobile Banking Adoptions in China Market." Discrete Dynamics in Nature and Society 2020 (October 10, 2020): 1–19. http://dx.doi.org/10.1155/2020/1843697.
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With the rapid development of the mobile device and Internet usage, the mobile banking has seen remarkable growth across the world, especially in the past few years, as one of the emerging financial innovations. This paper attempts to explore the mobile banking services offered by selected commercial Chinese banks. The main data of this study were obtained through the comprehensive evaluation of mobile banking services. The DEMATEL-ANP method was used to evaluate the main factors influencing the adoption of mobile banking. The results show that there is still big space for the improvement of the mobile banking services for the selected Chinese banks. The management significance and suggestions for these banks are also discussed.
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Mulengani Katwalo, Allan, and Stella Isendi Muhanji. "Critical success factors for the “unbanked” customers in Kenya." International Journal of Bank Marketing 32, no. 2 (April 1, 2014): 88–103. http://dx.doi.org/10.1108/ijbm-09-2013-0100.
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Purpose – The purpose of this research paper is to define the factors that a bank would require to have in order to succeed in the traditionally unbanked segment of the East African region. The paper specifically looks at approaches used by banks to make banking affordable and accessible to most Kenyans. Most banks are turning their focus to the traditionally unbanked with all of them competing in an ever decreasing market. Design/methodology/approach – The research was carried out by using both primary and secondary data. Primary data were collected using a survey questionnaire administered to customers of banks in Kenya whilst secondary data were collected from the banking survey of Kenya reports. Respondents were sampled using convenient sampling method. Findings – The paper found empathy and satisfaction to be the major critical success factors (CSFs) for these banks. This implies that customers who visit these banks are more concerned with the attention they receive when they seek financial services. It was also found that there was significant difference between banks that cater for the traditionally unbanked customers (TUC) and those that do not. Research limitations/implications – Management of banks should put into cognizance aspects of empathy and satisfaction which are the identified CSFs. This will enable them to improve and sustain their competitiveness in the banking sector. Practical implications – The paper puts forward market practices which can inform policies and guide other financial institutions that would want to provide services to the TUC. Originality/value – The paper introduces the concept of service quality for TUC who were left out in the banking sector in Kenya.
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Thakur, Rakhi. "What keeps mobile banking customers loyal?" International Journal of Bank Marketing 32, no. 7 (September 30, 2014): 628–46. http://dx.doi.org/10.1108/ijbm-07-2013-0062.
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Purpose – Customer satisfaction and loyalty have been traditionally two main goals aimed at by managers. Focusing on the mobile banking (m-banking), the importance of these concepts is even greater due to the increasing focus of banks on mobile phones in order to reach out to a larger set of customers. The purpose of this paper is to characterize both these concepts in the m-banking context. Design/methodology/approach – The influence of satisfaction and trust and their antecedents in developing customer loyalty in the m-banking were measured. The proposed model was tested through PLS-SEM. Findings – This research showed that satisfaction from m-banking based on previous interactions had a positive effect on customer loyalty. In addition, mobile interface usability and service were found to have a positive effect on customer satisfaction. Practical implications – In order to develop customer loyalty in m-banking, banks should prioritize user friendly interface and provide services valued by m-banking customers. Originality/value – Although the increasing competitiveness in m-banking is motivating banks to offer the same to customers, there is lack of studies that analyze the formation of satisfaction, trust and loyalty concepts in this context. This study therefore represents an initial contribution to the field of m-banking, which is gradually acquiring popularity in recent years especially in developing countries.
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Selvan, N. Thamarai, B. Senthil Arasu, and M. Sivagnanasundaram. "Behavioral Intention Towards Mobile Banking in India." International Journal of E-Services and Mobile Applications 3, no. 4 (October 2011): 37–56. http://dx.doi.org/10.4018/jesma.2011100103.
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The rapid growth of mobile technologies and devices makes it possible for the customers of banking services to conduct banking at any place and at any time. Today, most of the banks in the world provide mobile access to its customers for banking as mobile banking systems improve their efficiency and reduce transaction costs. Banks invested heavily in the mobile banking system hoping that its customers would embrace it with open arms. Contrary to the expectation, the lukewarm patronage to mobile banking makes it crucial to understand the factors that contribute to users’ intention to use mobile banking. This study extends the applicability of technology acceptance model (TAM) to the mobile banking context. Based on the review of literature, few additional constructs were added to the TAM. Structural equation modeling (SEM) was used to test the casual relationships proposed. Findings of the study support the proposed model’s ability of explaining the users’ intention to adopt mobile banking.
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Chmielarz, Witold, and Konrad Łuczak. "Mobile Banking in the Opinion of Users of Banking Applications in Poland." Applied Mechanics and Materials 795 (October 2015): 31–38. http://dx.doi.org/10.4028/www.scientific.net/amm.795.31.
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The objective of this article is to present and analyze the findings of a survey concerning mobile banking services offered by commercial banks to individual clients. The present study conducted by the authors examines the use of banking products and services offered in the mobile channel and the opinions of individual customers on the subject. The findings presented in the article focus on mobile banking applications offered by universal banks in Poland available for mobile devices running the Android, iOS and WindowsPhone operating systems. The paper presents general assumptions of the study, description of the methodology and research sample as well as the analysis of the obtained findings and their discussion. The quantitative study was conducted on a selected sample of respondents with the application of a standardized evaluation method used for the assessment of selected banking products and services.
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Adaramola, Anthony O., and Funso T. Kolapo. "Assessment of Bank Technology Machine and Mobile Banking as Market Strategies to Raising Performance of Banks in Nigeria." Journal of Economics and Behavioral Studies 11, no. 3(J) (July 18, 2019): 108–15. http://dx.doi.org/10.22610/jebs.v11i3(j).2873.
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The market challenge in form of increasing competition for success in the banking sector calls for market strategies that are customer- based towards raising the performance of Nigerian banks. The use by banks, of Automated Teller Machines and Mobile banking are at the centre stage of this market strategy. Existing knowledge on this aspect of marketing is inadequate. This study assessed the empirical effects of Automated Teller Machine and Mobile banking as marketing tools on return on equity of banks in Nigeria. Both primary and secondary data were used in the study. The data were fitted to Panel regression models of Fixed and Random effects. Findings support increasing distribution of Teller machines and raising awareness on Mobile banking as result-oriented marketing strategy for banks.
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Cavus, Nadire, and Dambudzo Netsai Chingoka Christina. "Information technology in the banking sector: Review of mobile banking." Global Journal of Information Technology 5, no. 2 (January 5, 2016): 62. http://dx.doi.org/10.18844/gjit.v5i2.196.
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<p>This paper is written to state the advantages and disadvantages, the different models to test the effects of individual’s intention to adopt mobile banking, the different technologies that are being implemented currently by banks and what the future holds for mobile banking. Information Technology (IT) has evolved over time and has changed the way business is conducted. The way people conduct business has been made easier and more efficient. IT has opened many doors for new technologies that are used within business and for individual use; the Banking sector is of no exception. Mobile banking is the fastest growing channel of banking as a result few people are walking into bank branches nowadays. Banks now need to remain relevant by catering to the needs and expectations of the customers and to the technology advancements. By providing better services and products customers are able to utilise. The role of IT in the banking sector can be divided into two categories: Communication and connectivity, and individual and business transactions. IT enables for sophisticated products to be developed with better frameworks, execution of dependable strategies and help with communication so to connect with people from different countries, businesses across the globe, geographical distance and diverse markets. </p><p> </p><p> Keywords: mobile banking, information technology, it, mobile banking adoption, mobile banking application, mobile payment</p>
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Michael, Okoche. "Political Dimension in Pan-African Cross-border Banking: An Inhibitor or Catalyst?" Business and Management Studies 5, no. 1 (January 22, 2019): 1. http://dx.doi.org/10.11114/bms.v5i1.3984.
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The emergence and the dominance of African banks in Africa have been touted as one of the popular mechanisms for financial development leading to a concept termed as Pan-African cross-border banking. African Banks have become dominant in the African market as opposed to European colonial banks substantially increasing their geographic footprints on the continent. African banks have become economically significant beyond their home countries and of systematic importance in a number of jurisdictions. This systematically examined the influence of the political environment on Pan-African cross-border banking using Kenya Commercial bank as a case study.Interpretive research paradigm guided the study seeking using qualitative data by interviewing employees, managers, and policymakers from the three subsidiaries of Kenya Commercial Bank; Uganda, Rwanda, and Burundi. This was further supported by secondary data collected from journal articles and reports from the Kenya Commercial Bank.The study established that political environment plays an important role in influencing Pan-African cross-border banking either through catalysing or inhibiting. Despite effort integration by African Union, regional unions like East African Community there still areas for improvement. In order to enhance Pan-African cross-border banking, there has to be systematically management of political environment which was distorted by history, ideologies, different political systems, different regulatory frameworks between the subsidiaries and home countries. This will further enhance the significance of Pan-African banks African cross-border banks enhancing economic development within Africa.