AN ANALYSIS OF THE EFFECT OF PROCESS INNOVATION ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA
AN ANALYSIS OF THE EFFECT OF PROCESS INNOVATION ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA
Bernard Cheruiyot Kirui - Department of Accounting and Finance, Mount Kenya University, Kenya
Dr. Ruthwinnie Munene - Department of Accounting and Finance, Mount Kenya University, Kenya
ABSTRACT
This research was conducted with an objective to find out how financial innovation affected Kenyan commercial banks' financial performance. The study's objective was to find out how process engineering affected Kenyan commercial banks' financial results. As of December 2022, there were forty-three active commercial banks in Kenya, which made up the study's population of interest. A set of closed-ended and open-ended questionnaires was used to gather primary data from the management personnel of commercial banks. Senior, middle, and low management personnel from the corresponding banks were the targeted responders. Secondary data was gathered from the Central Bank of Kenya's Bank Supervision Department annual reports in addition to the annual reports of commercial banks. It was done using a descriptive analysis method. The results of the study indicated that process innovation and the financial performance of Kenya's commercial banks had a positive and statistically significant link (r = 0.825; p < 0.05). According to the study, process innovation should be welcomed in order to boost competitiveness and enhance the provision of high-quality services. The findings of this study recommend that more investigation be done into the obstacles to financial innovation adoption in Kenyan commercial banks.
