Effect of Mobile Banking on Financial Performance of Commercial Banks in Eldoret Town, Kenya

Abstract

E-commerce had gradually affected the operations of the business and companies especially in the banking sector. The objective of study was to establish the effect of mobile banking on financial performance of commercial banks in Eldoret town. The study adopted innovation diffusion theory. The study adopts descriptive research design. The studies target 32 operational managers of commercial banks in Eldoret. The study used questionnaires. The data obtained was coded, organized and analyzed using SPSS. The inferential statistics involved the use of correlation analysis. Data was presented in form of tables. The mobile banking had significant influence (r =0. 781) on financial performance. The mobile banking had enhanced easy borrowing of loans using the phones hence increasing loaning in the banks and improved financial performance. The Central Bank of Kenya (CBK) should come up strategies decisions which monitor mobile banking transactions in order to reduce fraud and improve mobile banking in commercial banks.

Effect of Lending on the Financial Performance of Commercial Banks Listed at the Nairobi Securities Exchange

“…Mobile loans by commercial banks aims at targeting lower class customers who adopts the platform as a credit and saving service which eventually provides performance benefits to the lending institutions in terms of profits. According to Biwott et al, (2019), the expeditious growth in the mobile lending has provided access of financial services to the marginalized and poor segment of citizens which has culminated to improved financial performance amongst the lending institutions. Mobile loans according to Wong (2018) has continually transformed and shaped the banking sector in Kenya.…”