Title:
MOBILE BANKING TECHNOLOGY AND ITS INFLUENCE ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN LODWAR MUNICIPALITY

Authors:
Nakesio Ellotion Collins, Dr. J. Okello and Dr. A. T. Logiron, Kenya

Abstract:
Mobile banking technology is the most recent technological innovation in the modern banking industry. It has aided improvement in revenues by reducing overhead cost associated with financial institutions thus facilitating financial performance. The purpose of this study was to examine the influence of mobile banking technology on financial performance of commercial banks in Lodwar Municipality. The study adopted descriptive research design. Both primary and secondary data was collected using questionnaires, interview schedule and data collection sheet. The data collected was analyzed by the help of SPSS which yielded both quantitative and qualitative data using descriptive and inferential statistics. The study found that, mobile banking technology has a significant influence on financial performance of commercial banks in Lodwar Municipality. This was supported by a standardized score of 0.446 and a mean score of 4.668 of the descriptive statistics. Further, the results of correlation coefficient returned a p-value of 0.031 which is less than the adopted significance level of 0.05. Multiple regression model retuned an R2 of 0.11 which means that approximately 11% of the variance in financial performance can be explained by mobile banking technology. The study therefore concludes that mobile banking technology has a significant positive influence on financial performance of commercial banks in Lodwar Municipality. It is equally important to note that, friendliness of technological innovation influences operation of commercial banks positively and should be encouraged by policy makers.