dc.description.abstract | The use of new technologies is causing substantial shifts in Kenya's banking and finance
industry. The business is in the midst of enormous and notable developments that brought
about in and will keep on perplexity the banking industry with a variety of customer-focused
financial solutions. The desire to dominate the economy and surpass the cunning of their rivals
is the driving force behind all or some of these changes. The institution has welcomed potential
technological developments upheavals in order to boost its revenue margins and make sure
that the changing market place is fully utilized. These modifications have forced commercial
banks to resurrect its financially motivated philosophy within the face of an increasingly
cutthroat international financial industry. This study's primary objective was to figure out how
financial innovations affected the fiscal health of Kenya's commercial banks. The study
adopted descriptive research design. A comprehensive census of all 43 commercial banks in
Kenya was employed, obviating the need for sampling procedures. Secondary data was used
for this Study. A data collection sheet was used to collect data and the records of the data
collected was entered there before being subjected to a set of analytical tools. To gather data
on the amount and frequency of alternative channels of banking transactions, the researcher
made reference to Central Bank of Kenya annual supervisory reports, published reports, and
other documents like the banking sector publications for the years 2018 to 2022.The findings
of the study were that; From the regression analysis it was determined that: the beta value for
mobile banking was 0.775 at a 0.00 degree of importance. The result was an indication that
mobile banking was a positive and significant predictor of financial performance. The beta
value for online banking was 0.172. This meant that if all other variables were held constant a
rise in digital banking units led to a 0.172 improvement in the monetary outcomes. It also
meant that online banking was a positive and significant predictor for financial performance.
Size had the beta value of 1.327. This was an indication that a unit increase in size led to a
1.327 increase in financial performance. It also meant that size was also a positive and
significant predictor of financial performance. Agency banking had a beta value of 0.611. This
was an indication that agency banking was a positive and significant predictor of financial
performance of the banks. Based on the findings, it was recommended that; commercial banks
ought to employ fiscal creativity in order to improve business operations. For the purpose of
improving financial success, it is advised that commercial banks keep establishing long-lasting
business relationships and partnerships with web and mobile phone service providers. The
analysis suggests that commercial banks should hire additional representatives who provide
banking services in light of the investigation's outcomes. As a result, there would be more
transactions, resulting in higher earnings on capital. | en_US |