INFLUENCE OF FINANCIAL TECHNOLOGY USAGE ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA
Andrew Songoro Nyanga'u - School of Business and Economics, Department of Accounting and Finance, Kisii University, Kenya
ABSTRACT
This study investigated the influence of financial technology usage on the financial performance of commercial banks in Kenya. Financial technology has revolutionized the banking sector, yet its precise impact on profitability and operational efficiency remains a subject of ongoing debate. The specific objective determined the extent of financial technology usage among commercial banks in Kenya. The study adopted a descriptive research design, targeting 129 bank employees from all forty-three commercial banks licensed by the Central Bank of Kenya. A census sampling technique was utilized to select the entire population. Primary data were collected using structured questionnaires distributed to branch managers, finance managers and IT heads. Secondary data was gathered using data collection sheets form annual reports obtained from CBK’s websites. Data analysis involved descriptive statistics, correlation analysis and multiple regression analysis using the Statistical Package for Social Sciences. The findings revealed a significant positive relationship between financial technology usage and the financial performance of commercial banks in Kenya. Specifically, mobile banking, internet banking, and agency banking significantly enhanced financial performance. The study concluded that financial technology is a critical driver of bank performance in Kenya. The study recommended that commercial banks should continuously invest in technological infrastructure and innovate their digital platforms to sustain competitive advantage and improve overall financial performance in the dynamic Kenyan banking sector.