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dc.contributor.authorKachumbo, Elizabeth
dc.date.accessioned2021-05-03T09:41:09Z
dc.date.available2021-05-03T09:41:09Z
dc.date.issued2020
dc.identifier.urihttp://hdl.handle.net/11071/10419
dc.descriptionA Thesis submitted in partial fulfillment of the requirements for the award of the Degree of Masters of Business Administration at Strathmore University Business Schoolen_US
dc.description.abstractThe main objective of this research was to investigate the determinants of financial performance of commercial banking Fintechs in Kenya. Three specific objectives of the study were: to assess the effect of capital adequacy on the financial performance of commercial Banking Fintechs in Kenya; to assess the effect of size of customer base on the financial performance of commercial Banking Fintechs in Kenya; to assess the effect of size of loans advanced to customers on the financial performance of commercial Banking Fintechs in Kenya. The theoretical foundation of this study was guided by four theories: Innovation Diffusion theory, Technology Acceptance model, Resource Based theory and Schumpeterian Innovation theory. Philosophical approach was positivism while panel data research design was employed. The population of the study was 33 banking Fintechs and 10 commercial banks used as a control sample in Nairobi, Kenya. Purposive sampling method was used to select the 33-commercial banking Fintechs and 10 traditional commercial banks in Kenya during the study period of years 2014-2018. For data collection, secondary data related to capital adequacy, size of loans advanced and total customer base was used. Content validity was applied with data reliability measured using data from audited financial statements. To comply with research quality of data collected, diagnostic tests were conducted. Panel data analysis method where STATA data analysis software was used, anchored data analysis. The findings showed that capital adequacy (-0.352) has significant and negative relationship with financial performance of commercial banks. This implies that for every increase by one unit of capital adequacy, financial performance of Fintechs decreases by 35.2%. Findings established that customer numbers (-0.194) has significant and negative relationship with the financial performance of commercial banks. The study findings revealed that size of loans advanced (-0.028) has a negative but no significant relationship with financial performance of commercial banks in Kenya. The study concluded that the existence of significant effect of capital adequacy and number customer indicate that the two variables are important indicators of financial performance of commercial banks after the entry of commercial banking Fintechs. In addition, conclusion was made that the insignificant relationship between size of loan and financial performance of commercial banking Fintechs may translate to nonperforming loans or loan defaults. This in essence may lead to decrease in financial performance of commercial banks. The study recommended that the disruptive effect of commercial banking Fintechs has enormous impact on the financial performance and volume of revenue of commercial banks in Kenya. The study recommends that it is necessary to establish the specific attributes of capital adequacy and number of customers that contribute to the significant effect on performance of commercial Banking Fintechs in Kenya. Since size of loans advanced has no significant effect on financial performance of commercial banks, it is important to establish other specific attributes associated with loans advanced that affect financial performance of commercial banking Fintechs. The major contribution of the current study was that previous studies have used multiple regression analysis and descriptive analysis while the current study had employed panel data analysis technique.en_US
dc.language.isoenen_US
dc.publisherStrathmore Universityen_US
dc.subjectFinancial performanceen_US
dc.subjectCommercial banken_US
dc.subjectFintechs_Kenyaen_US
dc.titleDeterminants of financial performance of commercial bank Fintechs in Kenyaen_US
dc.typeThesisen_US


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