Thesis
Primary Author
ABIERO ERICKSON
Subject Category
FINANCIAL INNOVATION AND FINANCIAL PERFORMANCE
Institutional ID
MIUC-REP-290

THE RELATIONSHIP BETWEEN FINANCIAL INNOVATION AND FINANCIAL PERFORMANCE OF KENYA COMMERCIAL BANK (KCB).

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Abstract

The purpose of this study was to establish a relationship between financial innovation and financial performance of Kenya commercial bank. Kenya commercial bank was selected because of its large employee base and the steady gradual financial growth. The variables of interest were; ATM adoption, mobile banking, internet banking and agency banking which were used to measure to what extent has financial innovation improved financial performance of the bank. Other variables such as return on asset (ROA), return on equity (ROE) were also used to measure financial performance of the bank. The study adopted a descriptive research design because it gives a researcher the ability to look at whatever they are studying in so many various aspects and can provide a wide range of view. The target population wasthirty eighty KCB bank branches in Nairobi region that offer supervision to the branch managers and employees. Qualitative and quantitative data was collected by use of questionnaires comprising both open and closed questions. Statistical package for social sciences (SPSS) version 25 was used to analyze the collected data and present them in percentages and frequencies. The study findings indicated that there was increase on how financial innovation products influences financial performance of the bank on several aspects that help in establishing a significant and positive relationship between financial innovation and financial performance of KCB bank. Based on the findings, the study concluded that financial innovations positively affects financial performance. The study therefore, recommended that financial innovation information should be available to the regulatory and advisory bodies for guidance to the KCB bank on the need to create and employ sound strategies geared towards continuous embracing innovativeness.

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