The Effect of Mobile Banking on Financial Performance of Commercial Banks Listed in Nairobi Securities Exchange
Harvard Dataverse (Africa Rice Center, Bioversity International, CCAFS, CIAT, IFPRI, IRRI and WorldFish)
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Title |
The Effect of Mobile Banking on Financial Performance of Commercial Banks Listed in Nairobi Securities Exchange
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Identifier |
https://doi.org/10.7910/DVN/3N4GGR
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Creator |
Mwita
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Publisher |
Harvard Dataverse
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Description |
The study sought to examine the effect of mobile banking on financial performance of listed commercial banks in Kenya. The research adopted a causal research design. The research targeted the 12 listed commercial banks that operated between 2016 to 2020. Annual panel data sources running from 2016 to December 2020 was adopted in the current study.” The collected panel data for the period of between 2016 and 2020 was analyzed using Microsoft excel. The study adopted OLS regression model for the purpose of estimating the coefficients and associated p-values to enable the fitting the model and forecasting. The effect of mobile phone-based loans on financial performance was direct and major. The study also showed that Mobile Banking Volume of Transactions had a direct and significant effect on financial performance. Mobile Banking Value of Transactions also had a direct and significant. The analysis also revealed that the effect of asset quality on financial performance was inverse and significant. The effect of Capital Adequacy on financial performance was direct but not significant. Finally, the effect of Bank size on financial performance was positive and significant. The study thus concluded that mobile banking, asset quality, capital adequacy and bank size had a significant effect on financial performance of listed commercial banks in Kenya. The study thus suggests to management of listed commercial banks to improved mobile banking technologies and platform for easy access and use by customers. Management of listed commercial banks to issue high quality loans to customers. The banks should continue performing back ground check on customers’ credit worthiness to lower incidences of nonperforming loans. Management of listed commercial banks to continue increasing the size of their banks. The banks can increase their investment in financial assets such as treasury bills and bonds.
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Subject |
Business and Management
Mobile Banking, Financial Performance, Asset Quality, Capital Adequacy, Bank Size. |
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Date |
2024-01-06
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Contributor |
Obuya , Michael
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