| dc.description.abstract | This study aimed to probe the effect of financial technology (Fintech) on the
performance of Commercial banks in Meru, Kenya. Fintech had surfaced as a
disruptive force in the financial industry, offering new ways of delivering financial
services to customers. The study explored the extent to which commercial banks in
Meru had embraced Fintech and the impact it had on their performance. By
concentrating on lending, deposit mobilization, payments and customer acquisition of
using fintech on commercial banks revenue streams in Meru County, Kenya. The study
was anchored on three theories mainly: diffusion of innovation, technology acceptance
model and theory of financial intermediation. The study adopted a mixed-styles
approach, combining both quantitative and qualitative data. The study involved a
check of commercial banks in Meru County, Kenya, to gather information on their use
of Fintech as well as their financial performance. The study was anticipated to give
perspective into the benefits and challenges of Fintech use in the commercial banking
sector in Meru County, Kenya. The findings would be useful to commercial banks,
policymakers, and other stakeholders in the financial industry in developing strategies
to enhance financial performance and use of Fintech in the region. Results on
regression study designated that there was a robust optimistic association (R=0.998, p-
value of 0.000) between adoption of financial technology and financial performance
of commercial banks. The findings further indicated that fintech payment, lending and
deposit mobilization have significant influence on financial performance while fintech
customer acquisition does not have a significant influence on financial performance of
commercial banks. It is important to outline the need to adopt fintech payment to
improve the efficiency of banking operations and to increase the accessibility and
convenience of banking services for customers. Fintech lending need to be adopted by
the commercial banks to increase the accessibility of credit for small and medium-
sized enterprises (SMEs) and enable banks reach to a broader customer base, including
underserved individuals or businesses. The study further recommends adoption of
fintech deposit mobilization to create new business opportunities for banks and
increase the efficiency of banking operations. Similarly adoptions of fintech customer
acquisition enhance the convenience of banking services for customers and improve
banks' ability to offer personalized financial products and services. The commercial
banks in Meru County were the only ones included in this study. It is advised that more
research be done that includes financial data from other Kenyan counties, as this could
offer new perspectives. Additionally, the study failed to recognize and look into the
influence of moderating factors on financial performance. The researcher suggests that
future studies examine how modifiers affect the implementation of technology for
finance and financial performance. | en_US |
