DIGITAL FINANCIAL SERVICES AND SUSTAINABLE PERFORMANCE OF COMMERCIAL BANKS IN KENYA

Angeline Murugi Njagi, Dr. Kimani E. Maina, Dr. Richard Ngali

Abstract


This study sought to establish the effect of digital finance service on the sustainable performance of commercial banks in Kenya. Specifically, the study sought to assess the effect of point-of-sale platform on sustainable performance of commercial banks in Kenya. The study was anchored on Technology Acceptance Model (TAM). The study adopted a descriptive research design. The unit of analysis for the study was 43 commercial banks in Kenya while the unit of observation was top management employees (credit manager, finance manager, and operations manager). The target population was therefore 129 individuals comprising of one credit manager, finance manager, and operations manager from each of the 43 commercial banks in Kenya. This research used census sampling technique to select the study sample size. The sample size for the study was therefore 129 respondents. Primary data in this study was collected through use of structured questionnaires. The questionnaire was piloted with a group of 15 respondents from the study population. The collected quantitative data was prepared for statistical analysis before it’s processed through checking and validation after the questionnaires are obtained from the field. Quantitative data was analysed by employing descriptive as well as inferential statistics with help of SPSS version 25. Additionally, descriptive statistics in this study consisted of mean, frequency distribution, percentages and standard deviation. The relationship between dependent and independent variables were established using correlation analysis and regression analysis. The study results were presented through use of tables and figures. The findings of this study benefit the government of Kenya and policy makers, the management of commercial banks, academicians and other researchers. To the government of Kenya and policy makers, the study provides information on digital finance service  and the sustainable performance of commercial banks in Kenya. The study concludes that point of sale platform has a positive and significant effect on sustainable performance of commercial banks in Kenya.

Key Words: Digital finance service, Point-of-sale platform, Sustainable performance, Commercial banks 


Full Text:

PDF

References


Agboola, M. G., Awobajo, K. A., Oluwatobi, S. O., Akinbode, M. O., Fagbohun, M. O., Esse, U. C., Segun-Adeniran, C. D., Asaolu, A. O., & Betek, C. M., (2014). Effect of Digitalization on the Performance of Commercial Banks in Nigeria. International Conference on Energy and Sustainable Environment, 1(1), 1-8.

Asian Development Bank. (2016). Digital Economy Blueprint, 2016. Asian Development Bank. Accessed On March 7, 2021.

Ayyagari, M., Demirguc-Kunt, A., Maksimovic, V. (2017). Small vs. Young Firms Across The World: Contribution To Employment, Job Creation, and Growth. World Bank Policy Research Working Paper No. 5631

Barba-Sanchez, V., Martinez-Ruiz, M., & Jimenez-Zarco, A.I. (2007). Drivers, Benefits and Challenges of ICT Adoption by Small and Medium Sized Enterprises (Smes): A Literature Review. Problems and Perspectives in Management, 5 (1), 103-114.

Bhattacherjee, A. (2012). Social Science Research: Principles, Methods, and Practices. New York: Free Press.

Bryman, A. & Cramer, D. (2012). Quantitative Data Analysis with SPSS Release 8 for Windows. New York: Routledge.

Buchak, G.; Matvos, G.; Piskorski, T. & Seru, A. (2018) Fintech, Regulatory Arbitrage, and the Rise of Shadow Banks. J. Finance. Econ. 130(3), 453–483.

Chen, M., & Ravi, M. (2018). A Digital Credit Revolution Insights from Borrowers in Kenya and Tanzania. CGAP Working Paper. Washington, DC: CGAP.

Chibueze, A. Z., Ogbulu, O. M., & Ndugbu, M. O., (2013). Electronic Banking and Bank Performance in Nigeria. West African Journal of Industrial & Academic Research, 6(1), 171-187.

Collis, J. & Hussey, R. (2014). Business Research: A Practical Guide for Undergraduate and Postgraduate Students 4th Ed. New York: Palgrave Macmillan

Creswell, J.W. (2014). Research Design. Qualitative, Quantitative, and Mixed Methods Approaches. Thousand Oaks CA: Sage.

Dugelay, F. (2020). What´S In It For Consumers?, Federal Reserve Bank Of Kansas City. Retrieved from; https://www.federalreserve.gov/publications/files/consumer-community-context-20200810.pdf

Fraillon, J., Ainley, J., Schulz, W., Friedman, T., & Gebhardt, E. (2014). Preparing for life in a digital age: The IEA International Computer and Information Literacy Study international report (p. 308). Springer Nature. Retrieved from https://www.researchgate.net/publication/282253388_

Gordon & Natarajan. (2019). Economic Impact of Telecommunications in Senegal. TeleAdv. Retrieved from http://www.teleadvs.com/wp-content/uploads/Economic-Impact-of-Telecommunications-in-Senegal.pdf

GPFI, S. (2010). Why Technology Will Disrupt And Transform Africa's Agriculture Sector -In A Good Way. Frontier Africa Report.

Jaouad, E., & Lahsen, O. (2018). Factors Affecting Bank Performance: Empirical Evidence from Morocco. European Scientific Journal, 14(3), 255-267.

Kothari, C. R. (2012). Research Methodology: Methods and Techniques. New Delhi: New Age International (P) Limited Publishers.

Li, Y.; Zhang, T. (2019). Evaluation of Financial Eco-Environment in China (2018–2019); Beijing, China: Finance Press.

Liu, Z. & Zhou, Z. (2019). Technical Director, R & D Investment and Sustainable Growth. Journal of business and economic, 8 (1), 72–84.

Mbere, W. M. (2013Factors Influencing Performance of Commercial Banks in Kenya: A Case of The Kenya Commercial Bank, Bungoma County (Doctoral dissertation, University of Nairobi,).

Mckee, M., Kaffenberger, E. & Zimmerman (2017). “The Effects of Information and Communication Technology on Employment, Skills, and Earnings in Developing Countries.” Background Paper for The World Development Report 2016, World Bank, Washington, DC.

Ngwengeh, B. B., Messomo, E. S., & Mbu, S. A. (2021). The Influence of Digital Financial Services on the Financial Performance of Commercial Banks in Cameroon. European Scientific Journal ESJ, 17(15), 312-345

Nyoni, T. (2020). The Impact of Digital Banking on The Performance of Commercial Banks in Zimbabwe. IJARIIE, 6(6), 1190-1219

Okello, I. (2016). The Effect of Electronic Retail Payment Services on Financial Performance of Commercial Banks in Kenya (Doctoral dissertation, University of Nairobi).

Opiyo, O. M. (2021). Digital Financial Services and Financial Performance of Commercial Banks in Kenya: A Descriptive & Correlational Approach. International Journal of Economics, Commerce and Management, United Kingdom, 9(2), 427-433.

Perlman, L. (2018). An Introduction to Digital Financial Services (DFS) (November 30, 2018). Available at SSRN: https://ssrn.com/abstract=3370667

Porter, O. & Millar, K. (2015). Factors Influencing Operational Energy Performance And Refurbishment Of UK Listed Church Buildings: Towards A Strategic Management Framework. Phd Thesis. Anglia Ruskin University, Chelmsford, Essex UK.

Radcliffe, J., & Voorhies, F. (2016). “Do Smes Create More and Better Jobs?” Report Prepared By EIM for the European Commission DG Enterprise and Industry, Brussels, Journal of European Commission, 2(4), 345-369.

Rathee, V., & Yaday, R., (2017). Perception of Customers towards Service Quality. A Study of Digital Banking Practices. International Journal of Management, Information Technology and Management, 7(10), 202-220.

Russell, R.B. (2013). Social Research Method: Qualitative and Quantitative Approaches. Los Angeles: SAGE Publications.

Sahu, P.K. (2013). Research Methodology: A Guide for Researchers in Agricultural Science, Social Science and Other Related Fields. New Delhi: Tata Mcgraw Hill.


Refbacks

  • There are currently no refbacks.