Digital Banking Services and Investment Decisions of Female-Owned Small and Medium Enterprises in Nairobi City County

Abstract

This study investigates how digital credit, digital savings, insurance technology (insurtech), and robo-advisory services affect the investment decisions of women-owned small and medium enterprises (SMES) in Nairobi City County. An explanatory research design was employed, using primary data collected through structured questionnaires. The study targeted a population of 39,440, from whom a sample of 396 respondents was drawn using the Yamane formula and using simple random sampling technique. Data was analyzed using SPSS version 29, with multiple regression analysis applied to test the hypotheses. The results revealed that insurtech services exert the greatest influence on investment decisions among female SME owners by offering accessible and affordable risk management options that boost business confidence and encourage growth-oriented investments. Additionally, robo-advisory services significantly improve investment decision quality by providing personalized, data-driven, and cost-efficient financial guidance. The study concludes that the adoption and effective use of digital banking services significantly enhance investment behavior and business performance among female owned SMEs. Consequently, improving access, affordability, and awareness of these services is vital for promoting sustainable investment growth and empowering women entrepreneurs in Nairobi City County.