Browsing by Author "Gitari, Jackline K."

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    Effect Of Innovation In Information And Communication Technology On The Performance Of Commercial Banks In Kenya
    (KCA University, 2019) Gitari, Jackline K.
    The banking segment in Kenya has undergone drastic change over the years. In their effort to reduce organizational and administrative expenditures, these banks have embraced many advanced models of technology, whereby customers have access to their accounts from the comfort of their personal computers. The objective of this study was to ascertain the effect of innovation in Information and Communication Technology on the performance of the Commercial Banks in Kenya. The study used theoretical studies such as Technology Acceptance model, Theory of reasoned action, Innovation Diffusion theory and Agency Theory. The study applied descriptive research strategy and the target population included 15 out of the 43 licensed Commercial banks. Panel data analysis was used for a period of 5 years between years 2014 to 2018. Besides using descriptive type of analysis, the study used secondary data. The study also used regression analysis to examine the statistical importance of the various independent variables (mobile banking, internet banking and agency banking) on the dependent variables (the performance of commercial banks in Kenya). The study used STATA to help in quantitative investigation in this examination. Diagnostic tests were carried out during data analysis. From the model summary, between 2014 and 2018 there was variation of 62.31% on financial performance. It was revealed that holding mobile banking, internet banking and agency banking to a constant zero between 2014 and 2015, return on assets of commercial banks in Kenya would be at 0.97361. From the regression equation, mobile banking displayed a positive regression coefficient against ROA; internet banking displayed a positive significant coefficient against ROA of commercial banks; while agency banking displayed a significant positive regression coefficient against ROA. The study concluded that mobile banking, internet banking and agency banking affected financial performance of commercial banks in Kenya. The study recommended that commercial banks should invest in internet, agency and mobile banking as this was found to have positive influence on financial performance.