IDEAS home Printed from https://ideas.repec.org/a/cwk/ajocsk/2023-02.html

Effects of Financial Innovations on Performance of Commercial Banks in Kenya

Author

Listed:
  • Victor Kombe

    (African Journal of Commercial Studies)

Abstract

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.

Suggested Citation

  • Victor Kombe, 2023. "Effects of Financial Innovations on Performance of Commercial Banks in Kenya," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 2(1).
    • Handle: RePEc:cwk:ajocsk:2023-02
    DOI: 10.59413/ajocs/v2.i1.1.2
    as

    Download full text from publisher

    File URL: https://ijcsacademia.com/index.php/journal/article/view/160
    Download Restriction: no
    File URL: https://libkey.io/10.59413/ajocs/v2.i1.1.2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Roseline Misati & Jared Osoro & Maureen Odongo & Farida Abdul, 2022. "Does digital financial innovation enhance financial deepening and growth in Kenya?," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 19(3), pages 679-705, July.
    2. Richard Nyangosi & J.S. Arora, 2011. "Antecedents and obstacles to e-banking adoption: a comparative study of India and Kenya," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 4(2), pages 123-137.
    3. Giulio Cainelli & Rinaldo Evangelista & Maria Savona, 2006. "Innovation and economic performance in services: a firm-level analysis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(3), pages 435-458, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saima Javed & Yu Rong & Hafiz Muhammad Ihsan Zafeer & Samra Maqbool & Babar Nawaz Abbasi, 2024. "Unleashing the potential: a quest to understand and examine the factors enriching research and innovation productivities of South Asian universities," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    2. Frank Crowley & Jane Bourke, 2017. "The Influence Of Human Resource Management Systems On Innovation: Evidence From Irish Manufacturing And Service Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-28, January.
    3. Başak Dalgıç & Burcu Fazlıoğlu, 2021. "Innovation and firm growth: Turkish manufacturing and services SMEs," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 395-419, September.
    4. Alessandra Colombelli & Jackie Krafft & Francesco Quatraro, 2015. "Eco-innovation and Firm Growth: Do Green Gazelles Run Faster? Microeconometric Evidence from a Sample of European Firms. WWWforEurope Working Paper No. 88," WIFO Studies, WIFO, number 57897.
    5. Pim den Hertog & Luis Rubalcaba, 2010. "Policy Frameworks for Service Innovation: A Menu-Approach," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 26, Edward Elgar Publishing.
    6. Coad, Alex & Segarra, Agustí & Teruel, Mercedes, 2016. "Innovation and firm growth: Does firm age play a role?," Research Policy, Elsevier, vol. 45(2), pages 387-400.
    7. Barge-Gil, Andres & D'Este, Pablo & Herrera, Liliana, 2018. "Corporate scientists as the triggers of transitions towards firms' exploration research strategies," MPRA Paper 85415, University Library of Munich, Germany.
    8. Nicola De Liso & Anna Serena Vergori, 2017. "The Different Approaches to the Study of Innovation in Services in Europe and the USA," Metroeconomica, Wiley Blackwell, vol. 68(1), pages 121-146, February.
    9. Borghesi, Simone & Cainelli, Giulio & Mazzanti, Massimiliano, 2012. "Brown Sunsets and Green Dawns in the Industrial Sector: Environmental Innovations, Firm Behavior and the European Emission Trading," Climate Change and Sustainable Development 121701, Fondazione Eni Enrico Mattei (FEEM).
    10. Veronica Scuotto & Gabriele Santoro & Armando Papa & Elias G. Carayannis, 2017. "Triggering open service innovation through social media networks," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2017(3), pages 21-40.
    11. Hanen Sdiri & Mohamed Ayadi, 2022. "Does Innovation Foster or Mitigate the Corruption Obstacle? Firm-Level Evidence from Tunisia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 367-386, March.
    12. Moaniba, Igam M. & Su, Hsin-Ning & Lee, Pei-Chun, 2019. "On the drivers of innovation: Does the co-evolution of technological diversification and international collaboration matter?," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    13. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2018. "Internationalisation, innovation and productivity in services: evidence from Germany, Ireland and the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(3), pages 585-615, August.
    14. Aysa Ipek Erdogan, 2023. "Drivers of SME Growth: Quantile Regression Evidence From Developing Countries," SAGE Open, , vol. 13(1), pages 21582440231, March.
    15. Isabel Freitas & Tommy Clausen & Roberto Fontana & Bart Verspagen, 2011. "Formal and informal external linkages and firms’ innovative strategies. A cross-country comparison," Journal of Evolutionary Economics, Springer, vol. 21(1), pages 91-119, February.
    16. Fulvio Castellacci, 2007. "Technological regimes and sectoral differences in productivity growth ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(6), pages 1105-1145, December.
    17. Rinaldo Evangelista & Maria Savona, 2010. "Innovation and Employment in Services," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 16, Edward Elgar Publishing.
    18. Bello, Daniel C. & Radulovich, Lori P. & Javalgi, Rajshekhar (Raj) G. & Scherer, Robert F. & Taylor, Jennifer, 2016. "Performance of professional service firms from emerging markets: Role of innovative services and firm capabilities," Journal of World Business, Elsevier, vol. 51(3), pages 413-424.
    19. Faria, Lourenço Galvão Diniz & Andersen, Maj Munch, 2017. "Sectoral patterns versus firm-level heterogeneity - The dynamics of eco-innovation strategies in the automotive sector," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 266-281.
    20. Evangelista, Rinaldo & Vezzani, Antonio, 2010. "The economic impact of technological and organizational innovations. A firm-level analysis," Research Policy, Elsevier, vol. 39(10), pages 1253-1263, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cwk:ajocsk:2023-02. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Charles G. Kamau (email available below). General contact details of provider: https://ijcsacademia.com/index.php/journal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.