|
Abstract:
Technological innovation is currently, recognized as one of the key factors on the firms' com-petitive advantage as well as a critical element in improving the economic and financial results of firms. Indeed, increased economic and financial performance have been observed among firms capable of using innovation to improve their processes or differentiate their products and services in relation to their competitors. The main objective of this study was to establish the effect of mobile banking, internet banking, automated teller machines and electronic funds transfers on the financial performance of commercial banks in Kenya. The target population of this study was the 42 commercial banks licensed by CBK to operate in Kenya as at December 2015. Panel model was used to analyse the secondary data .The findings showed that technological innovations had statistically significant influence on total income, profit and return on assets of the banks in Kenya. Therefore it can be concluded that bank innovations influence on profitability, income and return on assets. It is recommended to the management of commercial banks and the Government to continue explore and implement sustainable banks technological innovation link-ages and collaborations with mobile phone service providers as well as the internet service pro-viders as a way of accelerating the penetration of innovations and eventually creating desired impacts in the economy.
|
