Effects of Financial Innovations on Performance of Commercial Banks in Kenya


  • Victor Kombe ngao43@gmail.com Author




Internet Banking, Mobile Banking, Electronic Fund Transfers, Financial Performance


Understanding how financial innovations affect Kenya's commercial banks' performance is the main goal of the current study. The United States has long been a leader in financial innovation. However, in terms of financial innovation, China and African nations like Kenya and Nigeria have taken the lead globally. Kenya presently leads the world in mobile money services. The conflicting results of the positive and negative performance of commercial banks as a result of financial innovations served as the impetus for the current study. A literature review technique was adopted in the research. The study's overall conclusions demonstrate that financial innovations improve financial performance, as seen by an increase in transactions, the creation of convenience, and decreased maintenance costs. Banks that are incorporating financial innovations are therefore better positioned to boost their   revenue and customer satisfaction, both of which are linked to increased performance. According to the report, authorities should make sure that there are laws in place that can foster an environment where banks may keep innovating.


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How to Cite

Kombe, V. (2023). Effects of Financial Innovations on Performance of Commercial Banks in Kenya. African Journal of Commercial Studies, 2(1), 12–26. https://doi.org/10.59413/ajocs/v2.i1.2

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