The Effect of Mobile Banking on Financial Performance of Commercial Banks Listed in Nairobi Securities Exchange
DOI:
https://doi.org/10.17613/58v3-pr33Keywords:
Mobile banking, Financial Performance, Asset Quality, Bank Size, Capital AdequacyAbstract
The purpose of the study was to determine the factors affecting job satisfaction in public sector in Kenya at Post Bank Kenya. The study specific objectives included to examine the influence of remuneration, reward system, leadership styles and employee involvement on job satisfaction at Post Bank Kenya. The research employed descriptive survey design to allow for a thorough examination of the research problem. The target population included 234 employees attached to Post bank Kenya, Nairobi head office. The study adopted 40% of the target population as the sample size giving sample size of 94. Stratified random sampling technique was used to select employees. Primary data was collected through questionnaires administered by the researcher through online survey where google forms designed questionnaires was shared with respondents in form of a link in their personal emails. The collected data was analysed using Microsoft Office Excel. The data was analysed using quantitative methods such frequency distribution tables. Data was presented in the form of Pie charts and bar graphs. First, the study established that remuneration had a major influence on job satisfaction at Post Bank Kenya as supported by 78% of the despondences. Secondly, reward system had a major influence on job satisfaction at Post Bank Kenya as evidenced by 76% of the respondents. Thirdly, leadership styles had a major influence on job satisfaction at Post Bank Kenya as evidenced by 83% of the respondents. Finally, involvement of employees had a major influence on job satisfaction at Post Bank Kenya as supported by 92% of the respondents. The study suggests to top management of Post bank Kenya to improve on remuneration, reward system and adopt transformational and democratic leadership and improve on the level of involvement of employees in terms of empowering, involvement in decision making and allowing employees to set objectives.
Downloads
References
Adam, M. H. M. (2014). Evaluating the Financial Performance of Banks using financial ratios-A case study of Erbil Bank for Investment and Finance. European Journal of Accounting Auditing and Finance Research, 2(6), 162-177.
Adeusi, S. O., Akeke, N. I., Adebisi, O. S., & Oladunjoye, O. (2014). Risk management and financial performance of banks in Nigeria. Risk Management, 6(31), 123-129.
Akerlof, G. A. (1978). The market for “lemons”: Quality uncertainty and the market mechanism. In Uncertainty in economics (pp. 235-251). Academic Press.
Anyasi, F. I., & Otubu, P. A. (2009). Mobile phone technology in banking system: Its economic effect. Research Journal of Information Technology, 1(1), 1-5.
Baabdullah, A. M., Alalwan, A. A., Rana, N. P., Kizgin, H., & Patil, P. (2019). Consumer use of mobile banking (M-Banking) in Saudi Arabia: Towards an integrated model. International Journal of Information Management, 44, 38-52.
Bagudu, H. D.and Mohd K, S. and Roslan, A. (2017) The effect of mobile banking on the performance of commercial banks in Nigeria. International Research Journal of Management, IT & Social Sciences, 4 (2). pp. 71-76. ISSN 23957492
Bebeji, A., Mohammed, A., & Tanko, M. (2015). The effect of board size and composition on the financial performance of banks in Nigeria. African Journal of Business Management, 9(16), 590-598.
Błach, J. (2011). Financial innovations and their role in the modern financial system-identification and systematization of the problem. e-Finanse: Financial Internet Quarterly, 7(3), 13-26.
Cleveland, C. E. (2016). A Study on How Mobile Banking Has Affected the Banking Industry: Has Mobile Banking Improved Bank Performance? Honors Theses. 228. https://egrove.olemiss.edu/hon_thesis/228
Evian, M., Limijaya, A., & Hutagaol-Martowidjojo, Y. (2021, August). An Analysis on the Effect of E-Banking on Bank Performance in Indonesia. In 2021 International Conference on Information Management and Technology (ICIMTech) (Vol. 1, pp. 187-192). IEEE.
Gikandi, J. W., & Bloor, C. (2010). Adoption and effectiveness of electronic banking in Kenya. Electronic commerce research and applications, 9(4), 277-282.
Harelimana, J. B. (2017). Impact of mobile banking on financial performance of Unguka Microfinance Bank Ltd, Rwanda. Global Journal of Management and Business Research.
Kadioglu, E., Telceken, N., & Ocal, N. (2017). Effect of the asset quality on the bank profitability. International Journal of Economics and Finance, 9(7), 60-68.
Karugu, C., Achoki, G., & Kiriri, P. (2018). Capital adequacy ratios as predictors of financial distress in Kenyan commercial banks. Journal of Financial Risk Management, 7(03), 278.
Kithaka, E. D. W. I. N. (2014). The effect of mobile banking on financial performance of commercial banks in Kenya (Doctoral dissertation, University of Narobi).
Leland, H., & Pyle, D. (1977). Informational asymmetries, financial structure, and financial intermediation. The Journal of Finance, 32(2), 371-387.
Li, X. & Zeng, S. (2010). Finance Innovation Model Literature Review. Beijing University of Technology, China.
Lin, H., Zeng, S., Liu, H., & Li, C. (2016). How do intermediaries drive corporate innovation? A moderated mediating examination. Journal of Business Research, 69(11), 4831-4836.
Mabwai, F. (2016). Effects of mobile banking on the financial performance of commercial banks in Kenya (Doctoral dissertation, University of Nairobi).
Mageto, I., Muturi, W., & Abuga, V. (2017). Effect of mobile banking on financial performance of Commercial Banks in Kisii Town, Kenya. International Journal of Recent Research in Commerce Economics and Management (IJRRCEM), 4(1), 116-125.
Maina, D. W. & Mungai, J. (2019). Mobile banking services and financial performance of tier one commercial banks in Kenya. International Academic Journal of Economics and Finance, 3(4), 232-254
Mbiti, I., & Weil, D. N. (2013). The home economics of e-money: velocity, cash management, and discount rates of M-Pesa users. American Economic Review, 103(3), 369-74.
Mbutor, M. O., & Uba, I. A. (2013). The impact of financial inclusion on monetary policy in Nigeria. Journal of Economics and International Finance, 5(8), 318-326.
Musyoki, D., & Kadubo, A. S. (2012). The impact of credit risk management on the financial performance of banks in Kenya for the period. International Journal of Business and Public Management, 2(2), 72-80.
Musyoka, B. K. (2017). The effect of capital adequacy on the financial performance of commercial banks in Kenya (Doctoral dissertation, University of Nairobi).
Mutua, R. W. (2013). Effects of mobile banking on the financial performance of commercial banks in Kenya (Doctoral dissertation, University of Nairobi).
Mwange, J. A. (2013). The impact of mobile banking on financial performance of commercial banks in Kenya (Doctoral dissertation, University of Nairobi).
Nguyen, T. H. (2020). Impact of bank capital adequacy on bank profitability under basel ii accord: evidence from vietnam. Journal of Economic Development, 45(1).
Nwankwo, S. N. P. (2019). Effect of capital adequacy on commercial bank’s financial performance in Nigeria, 2010-2017. European Journal of Accounting, Finance and Investment, 5(4), 1-21.
Nyamweya, J. M. & Obuya, M.O. (2020). Role of Financial Efficiency and Income Distribution on the Relationship Between Economic Growth on Poverty Levels in East Africa Community Countries. International Journal of Finance and Banking Research. 6(4), 65-73. doi: 10.11648/j.ijfbr.20200604.12
Obuya, M. O., & Olweny, T. (2017). Effect of Bank’s Lending Behaviour on Loan Losses of Listed Commercial Banks in Kenya. International Journal of Management and Commerce Innovations, 5(1),135-144
Okiro, K., & Ndungu, J. (2013). The impact of mobile and internet banking on performance of financial institutions in Kenya. European Scientific Journal, 9(13), 146-161.
Ongore, V. O., & Kusa, G. B. (2013). Determinants of financial performance of commercial banks in Kenya. International journal of economics and financial issues, 3(1), 237.
Ouma, S. A., Odongo, T. M., & Were, M. (2017). Mobile financial services and financial inclusion: Is it a boon for savings mobilization? Review of development finance, 7(1), 29-35.
Owusu K. K., Osei-Wusu, E.E. and Amanor, K. (2020), Exploring the effect of online banking on bank performance using data envelopment analysis, Benchmarking: An International Journal, 27(1), 137-165. https://doi.org/10.1108/BIJ-06-2018-0154
Oyelami, L. O., Saibu, O. M., & Adekunle, B. S. (2017). Determinants of financial inclusion in sub-Sahara African countries. Covenant Journal of Business and Social Sciences, 8(2).
Raines, J. P., & Leathers, C. G. (1992). Financial innovations and Veblen’s theory of financial markets. Journal of Economic Issues, 26(2), 433-440.
Sabir, R.I, Ghafoor, O., Akhtar, N., Hafeez, I. and Rehman, S. (2014), Factors Affecting Customer Satisfaction in Banking Sector of Pakistan. International Review of Management and Business Research 3(2), 1014-1025.
Shaikh, A. A., & Karjaluoto, H. (2015). Mobile banking adoption: A literature review. Telematics and informatics, 32(1), 129-142.
Sharma, S. K., & Sharma, M. (2019). Examining the role of trust and quality dimensions in the actual usage of mobile banking services: An empirical investigation. International Journal of Information Management, 44, 65-75.
Singla, H. K. (2008). Financial performance of banks in India. The IUP Journal of Bank Management, 7(1), 50-62.
Tam, C. and Oliveira, T. (2017), Understanding mobile banking individual performance: The DeLone & McLean model and the moderating effects of individual culture, Internet Research, 27 (3), 538-562. https://doi.org/10.1108/IntR-05-2016-0117
Thoa, P. T. X., & Anh, N. N. (2017). The determinants of capital adequacy ratio: The case of the Vietnamese banking system in the period 2011-2015. VNU Journal of Science: Economics and Business, 33(2).
Waema, T. M., & Omwansa, T. K. (2014). Deepening financial inclusion through collaboration to create innovative and appropriate financial products for the poor.
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Dennis Mwita (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
