The Influence of Financial Technologies Innovations on Financial Inclusion of Commercial Banks in Nakuru County, Kenya
DOI:
https://doi.org/10.70619/vol6iss7pp1-15-893Keywords:
Mobile banking technology, internet banking technology, agency banking technology, insurance platforms, financial inclusionAbstract
This study aimed to evaluate how FinTech innovations affect commercial banks' financial inclusion in Kenya. There are approximately 39 commercial banks headquartered in Nakuru County, Kenya. This was therefore the study's target population. The researcher therefore targeted 390 staff members from both the ICT and Banking Operations Departments of the 39 banks. The sample size comprised 105 senior managers from both the ICT and Banking Operations Departments of commercial banks in Nakuru County, Kenya. Purposive sampling was used to select the respondents. The investigation collected both secondary and primary data. Data analysis was performed to establish a link between theory and reality by examining the research hypothesis and addressing the study objectives. The data were checked for omissions, errors, and consistency. The results showed that mobile banking technology had a positive and significant influence on commercial banks' financial inclusion in Kenya's Nakuru County (β = 0.239, p = 0.003). In addition, the results showed that internet banking technology had a positive and significant influence on commercial banks' financial inclusion in Kenya's Nakuru County (β = 0.192, p = 0.006). Further results showed that agency banking technology had a positive and significant influence on commercial banks' financial inclusion in Kenya's Nakuru County (β = 0.173, p = 0.034). In addition, the results showed that insurance platforms had a positive and significant influence on commercial banks' financial inclusion in Kenya's Nakuru County (β = 0.324, p = 0.000). Banks should develop strategies to raise awareness and reach more customers to increase the number of M-banking transactions. Banks should complement digital initiatives by promoting financial literacy to ensure customers can effectively use these technologies and make informed financial decisions. The government should provide further policy support for the combined growth of InsurTech and digital inclusive finance. To create information-sharing platforms for insurance, health, technology, and other fields, insurance regulatory bodies should combine data from governments, insurance businesses, and pertinent organizations.
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