Effect of Mobile Banking on Financial Performance of Deposit Money Banks in Maiduguri Borno State {A Case of United Bank of Africa (Uba) PLC, Maiduguri Main Branch}

2020 ◽  
Author(s):  
Mohammed Usman
Keyword(s):  
Financial Performance ◽  
Mobile Banking

scholarly journals Electronic Banking and Financial Performance of Commercial Banks in Kenya

2019 ◽  
Vol 3 (II) ◽  
pp. 293-304
Author(s):  
Maria Mueni Mutisya ◽  
Gerald Atheru
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Internet Banking ◽  
Business Environment ◽  
Mobile Banking ◽  
Electronic Banking ◽  
Return On Assets ◽  
Independent Variables ◽  
Net Profit ◽  
Automated Teller Machine

Information technology has changed the traditional ways of doing business to a digital and electronic way that has led to globalization. The banking industry has been forced by the wave of electronic payment system in the business environment to change from its traditional ways such as: long queues as customers waited to be served, delay in the clearing house as representatives of different banks waited to settle their dues and manual work that resulted to errors. The main purpose of the study was to determine the effect of electronic banking on the financial performance of commercial banks in Kenya. The specific objectives were to determine the extend of internet, mobile, automated teller machine and debit/credit card banking adoption and its effect on financial performance. The study covered a period of five years that is from the year 2011 to the year 2015 and adopted descriptive research design. The data collected was analyzed by the use of both descriptive and inferential statistics procedures. Primary and secondary data was collected from the 34 commercial banks that responded leading to a respond rate of 79.04% out of the 43 commercial banks. The trade analysis showed that internet banking was recognized and accepted by the Kenyan commercial banks and the Kenyans as a way of transacting. Electronic banking was found to be positive and significantly related to the financial performance of the commercial banks in Kenya. This was attributed by an R Square of 0.688 for Return On Assets, 0.63 for Net Profit and 0.277 for Return On Equity indicating that the independent variables in the study were able to give information of up to 68.8%, 63% and 27.7% respectively while the remaining 31.2%, 27% and 72.3% could not be explained in the study but could be explained using other variables outside the study. All the independent variables were (internet banking, Mobile banking, Automated Teller Machine banking and Debit/Credit banking) found to be positively and significantly related to the Return On Assets while only mobile banking and internet banking were found to be positively and significantly related to Net Profit since their p Values were less 0.05. Automated Teller Machine banking showed a positive relation that was insignificant with the Return On Equity.The study recommends that, electronic banking should be employed by commercial banks through proper management policies since it has shown improved efficiency and financial performance. For further studies, areas of crime technology, quality of banking services, electronic fund transfer and performing loans should be looked at. This is an open-access article published and distributed under the terms and conditions of the Creative Commons Attribution 4.0 International License of United States unless otherwise stated. Access, citation and distribution of this article is allowed with full recognition of the authors and the source.

scholarly journals Analyzing Effect of Alternative Banking Channels on Financial Performance of Burundi Commercial Banks: Evidence from Kenya Commercial Bank in Burundi

2020 ◽  
pp. 1-11
Author(s):  
Nkeshimana Carlos ◽  
Martin Onsiro Ronald
Keyword(s):  
Financial Performance ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Strong Relationship ◽  
Target Population ◽  
Internet Banking ◽  
Sample Population ◽  
Mobile Banking ◽  
Significance Level ◽  
Descriptive Survey

The study sought to assess the effect of channels of alternative banking on financial performance of Kenya Commercial Banks in Burundi. The specific objectives were: to examine the effect of mobile banking on financial performance of Kenya Commercial Bank, Burundi; to assess the effect of internet banking on financial performance of Kenya Commercial Bank, Burundi; to examine the effect of auto teller machines on financial performance of Kenya Commercial Bank, Burundi; and to assess the effect of agency banking on financial performance of Kenya Commercial Bank, Burundi. The study employed descriptive survey research design as well as correlation research designs. Based on information obtained from KCB, the target population for the study was 37 employees and 114 customers. The researcher used Slovin’s formula to define the sample population n = 60 (14 employees and 46 customers). A questionnaire was used for data collection. The data was qualitatively and quantitatively analyzed. The results of the study showed that there was a strong relationship between the different banking distribution channels and the financial performance of KCB Bank. It also found that 14.1% of the total variance in financial performance of KCB Bank could be attributed to alternative banking channels. The remaining 85.9% of the variance in financial performance could be attributed to other determinants of financial performance that were not the focus of this study. ANOVA statistics revealed that the regression model was ideal since it had a significance level of 0.0%. The study also found that mobile banking, Automated Teller Machine, agencies and Internet banking affected the performance of commercial banks in a positive and statistically significant way. The study recommends that Burundian commercial bank sought to invest heavily in alternative banking as this will lead to an improvement in banks' financial performance. The study also recommended that KCB should examine the competitive environment and determine the means to achieve the goal of interoperability, and continue to make electronic banking products available, offering various types of bank cards adapted to the needs of each client.

scholarly journals Mobile Banking Services with Financial Performance on Commercial Banks in Kenya

2019 ◽  
Vol 3 (VI) ◽  
pp. 176-192
Author(s):  
Maurine Mugane ◽  
Reuben Njuguna
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Short Message Service ◽  
Target Population ◽  
Short Message ◽  
Strong Positive Correlation ◽  
Mobile Banking ◽  
Banking Services ◽  
Positive Correlation ◽  
Message Service

The competition dimensions have changed following the adopting of various internet banking services that came about as a result of technological innovations such as the introduction of Automated Teller Machines (ATMs), phone banking Personal computer banking which were some of the first innovations of electronic finance. The main objective of this study was to establish the impact of mobile banking services on the financial performance of commercial banks in Kenya. The specific objectives guiding this study included to assess the influence of short message service (SMS) banking on the financial performance of commercial banks in Kenya, to establish the effect of person to person payments on the financial performance of commercial banks in Kenya, to determine the effect of bill payments on the financial performance of commercial banks in Kenya and to find out the effect of airtime top up service on the financial performance of commercial banks in Kenya. The research design that the study adopted was a descriptive research design employing quantitative research strategies. In this study the target population under investigation was all the 40 commercial banks in Kenya. Since in the current study the target population was 80 participants from all the 40 commercial banks in Kenya a census inquiry method was the best method used. Primary data for this study was collected through the use of a questionnaire that was given senior managers from all the departments of these organizations. Both quantitative and qualitative data was generated in this study. Qualitative data was analysed using content analysis whereby content of responses was looked at and responses were grouped together in relation to common patterns or themes for coherent categorization. Descriptive statistics included measures of central tendency and dispersion thus standard deviation and mean and use of absolute and relative percentage frequencies. Presentation of quantitative data was in form of graphs and tables and explanation given in prose. The study findings show that short message service had an above average positive correlation with financial performance of commercial banks and was statistically significant. Person to person had an average correlation with financial performance of commercial banks and was statistically significant. Bill payments had a strong positive correlation with financial performance of commercial banks and was statistically significant. Airtime top up service had an strong positive correlation with financial performance of commercial banks  and was statistically significant. The study concludes that short message service banking has become and important part of banking, more and more people prefer to receive banking alerts through short message service which has not only improved service delivery but has had a positive impact on financial performance. Commercial banks have experiences large revenues from different activities with the banking system core among them the bill payments activities. The study recommends that it is important for commercial banks to focus more on short message service banking to lower operational costs thereby improving financial performance. Commercial banks need to consider using person to person payments to improve on their performance, they need to enhance their bill payments to get more clients paying bills using their systems so as to improve on their financial performance and that it is important for commercial banks to put more effort on airtime top up service so as to improve on their financial performance.

scholarly journals Digital Financial Services and Financial Performance of Savings and Credit Cooperative Societies in Kakamega County, Kenya

2021 ◽  
Vol 3 (1) ◽  
pp. 9-20
Author(s):  
Kizito Simiyu Wanyonyi ◽  
Dominic Ngaba
Keyword(s):  
Financial Performance ◽  
Diffusion Of Innovation ◽  
Financial Services ◽  
Service Providers ◽  
Banking System ◽  
Target Population ◽  
Internet Banking ◽  
Primary Data ◽  
Mobile Banking ◽  
Services Delivery

Savings and Credit Co-operative Societies (Saccos) in Kenya have realised a tremendous growth in the subsector and are investing huge amount of their scarce financial resources in digital  technology to enhance services delivery and offer a wide variety of products and services range, increased membership mobilisation and size, ensure better structure and effective financial performance. Digital financial Services as used in the Saccos industry is as a result of Information Communication Technology revolution commonly referred to as digital  commerce. Many Saccos are steadily changing from manual banking system of operations to providing digital Financial (e-banking) services that include internet banking, M-banking and Automated Teller machine support. The adoption of digital  financial Services by the Saccos is a strategic attempt to deal with increased cut throat competition from traditional banking institutions and non-banking financial institutions, to cut costs and add value to their services in order to optimise benefits to the shareholders. Despite the fact that Saccos have rapidly adopted digital financial services to provide services, and that they drive a huge section of the financial sector savings of the economy, they have experienced various challenges such as uncertainty and risk due to digital  financial services. The study sought to establish the influence of digital financial services on the financial performance of SACCOs in Kakamega County, Kenya. The specific objectives was to determine the effect of the mobile banking, internet banking, use of credit cards and digital  funds transfer on the financial performance of SACCOs in Kakamega County, Kenya. The research was guided by three theories of innovation and technology: Diffusion of Innovation Theory, The Theory of Task-Technology Fit Theory and the Technological context, Organisational context and Environmental context Theory.The study used a descriptive research design. The population of study were staff at the three SACCOs operating in Kakamega County. This consisted of 162 respondents who are the staff of the SACCOs. A sample of 49 respondents was taken which forms 30% of the target population which shall be evenly spread across the three SACCOs. The primary data was collected by use of self-administered semi-structured questionnaire.Collected data was analysed through descriptive and inferential statistics by the use of SPSS. Findings were presented by use of tables, frequencies, percentages, means and standard deviation.The study found that the financial performance of the SACCOs was significantly influenced by the digital financial services instituted by the SACCO managements. They demonstrated to have reliable mobile banking system where most of their customers had enrolled on the mobile banking platform and most of customer queries and updates were sorted via the mobile platform.Given the limitations and findings of this study, the researcher recommends that since there exists a positive relationship between digital financial services and bank performance and that e-banking has brought services closer to bank customer’s hence improving banking industry performance, SACCOs must also enhance the dynamics of the sector and embrace digital banking fully and extensively. Mobile banking faces various challenges among them being, system delays by the mobile money transfer service providers, slow processing of transactions, high transactions costs, limit on the amount of money that can be withdrawn in a day and fraud.

scholarly journals Financial Engineering and Financial Performance of Deposit Taking Savings and Credit Co-operative Societies in Kenya.

2021 ◽  
pp. 15-24
Author(s):  
Charles Kiprotich ◽  
Zipporah Onsomu
Keyword(s):  
Financial Performance ◽  
Significant Relationship ◽  
Financial Engineering ◽  
Process Engineering ◽  
Mobile Banking ◽  
Engineering Process ◽  
Control Variables ◽  
Banking Services ◽  
Product Engineering ◽  
Engineering Practices

The study explores the effect of financial engineering on financial performance of deposit taking Savings and Credit Co-operative Societies (SACCOs) in Kenya. Population constituted of 163 SACCOs and a sample of 45 was considered. The results depicted that SACCOs have adopted financial engineering practices in three forms: product engineering, process engineering and financial solutions engineering. In terms of their effect on performance, only process engineering was found to have a positive and significant relationship with financial performance. Product engineering and financial solutions engineering were found to have a positive but insignificant relationship was obtained. The study recommends that SACCOS should adopt financial engineering practices so as to improve their performance. More focus should be on process engineering. As such, SACCOs should automate their operations, adopt paperless services, use mobile banking services platform, use electronic funds transfer and install ATMs so as to improve their performance. In terms of control variables, the amount of loans were found to positively and significantly influence financial performance. As such, SACCOs should strive to derive products that can increase their level of loans. Keywords: Financial engineering, Financial performance, SACCOs, Kenya.

scholarly journals Innovative Banking Practices and Financial Performance of Commercial Banks in Kenya

2021 ◽  
Vol 3 (1) ◽  
pp. 41-53
Author(s):  
Hussein Hillowle Mohamud ◽  
Fredrick Warui
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Industry ◽  
Operating Cost ◽  
Investment Banks ◽  
Central Position ◽  
Mobile Banking ◽  
Face To Face ◽  
Product Service ◽  
Bank Tellers

Commercial banks serve as key financial intermediaries in facilitation of the flow of money in the banking industry. Commercial banks offer credit to investment banks in order to offer investment opportunities for risky investments especially for financial securities using depositors’ money. Globally, banks are affected by broad difficulties in the operating environment. The banking industry has embraced innovation to sustain competitiveness. Financial innovations used by commercial banks revolve around the latest product, service and its conveyance to consumers. Consequently, this information influenced the research with its aim as; investigating innovative banking applications and monetary capability of banks. Particular goals included examining how; real time gross settlements (RTGS), electronic fund transfers (EFT), pay bill innovation in mobile banking and the extent of agency banking influence monetary potential of banks. Research anchored on the Schumpeter theory of innovations, the agency and bank-led theories. It was explanatory in nature and applied a census approach to gather information. The targeted group included commercial banks registered under the Central Bank totalling to 42 tiers 1. Raw and derived data was equally utilized including, financial statements and face to face interviews with top level managers. Collected information was examined by SPSS. Given conclusions were dispensed descriptively, and by inferring to statistical presentations. The resulting conclusion was that; when RTGS, agency banking, EFT, and mobile banking are solely brought up/down by a single unit, financial performance increased/ decreased by 0.163, 0.27, 0.197, and 0.318 units. At a constant however, financial performance remained at 0.236 out of 5 units. In conclusion, commercial in banks have significantly relied on innovative banking practices to shift their financial performance to new heights. The study has particularly placed both mobile and agency banking at a more central position in driving financial performance to the desired level than other factors including the RTGS and EFT. As part of the recommendations, managements of commercial banks should consider scaling up their adoption of RTGS, agency banking, EFT, and mobile banking as ways of reducing the operating cost of their respective banks reducing banking hall congestions since most of the frequently sought banking services can be achieved without one on one meeting with the bank tellers. Management should also consider adopting more innovative banking practices besides those this research investigated.

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