Digital Banking and Financial Performance of Listed Commercial Banks in Kenya

Abstract

Purpose: The purpose of this study was to examine the relationship between digital banking and financial performance of listed commercial banks in Kenya.

Methodology: The study employed both cross sectional and longitudinal research designs. The target population consisted of the 11 listed commercial banks in Kenya. Data was derived from annual financial reports and publications from 2019 to 2022 and recorded in secondary data capture forms. The research employed descriptive statistics performing both correlation and regression analyses. The data was analyzed using excel spreadsheets.

Findings: The study revealed that online banking, agency banking and mobile banking are positively related to financial performance while ATM banking negatively impact the financial performance of listed commercial banks in Kenya.

Conclusion & Implications: Following the research findings, the study concludes that listed commercial banks in Kenya should increase their uptake of online banking, agency banking and mobile banking to improve their financial performance. They should cautiously use ATM banking as this can negatively affect their financial performance.  The study recommended that listed commercial banks in Kenya should increase digitalization to improve their financial performance. Digitalization is the best way to remain competitive in the fast-paced economy.

Keywords: Commercial Banks, Digital Banking, Financial Performance