| dc.description.abstract | Though commercial banks continue to invest in rolling out branches that are complemented
by various delivery channels, the challenge of access to formal financial services by
customers remains a big impediment to the banks' financial performance. To address these
challenges, the Central Bank of Kenya released a legislation that allows commercial banks to
contract third party retail networks as alternative financial delivery channel players which
were to cater for 80% of the banking population by 2013. However, to date only 38% of the
set target has been realised and it is not clear whether or not the realized proportion has any
significant contribution on the banks' performance.In addition,no study of a considerable
depth has established effect of mobile banking,agency banking and Internet banking on the
performance of commercial bank, It was on that basis that the study sought to establish the
effect of financial delivery channels on performance of commercial banks in Kenya.
Specifically the study sought to: establish the effect of mobile banking on the performance of
commercial banks in Kenya, to establish the effect of agency banking on performance of
commercial banks, and to establish the effect of internet banking on performance of
commercial banks. The study adopted correlation research design and was guided by the
Agency theory. Primary data were gathered using both structured and semi -structured
questionnaires. These were supplemented with secondary data gathered from the banks'
published reports. Out of 33 commercial banks, Data from three banks were used for
pretesting wherethe reliability test produced an overall Cronbach Alpha correlation
coefficient of 0.887.which suggested that the data collection was reliable. A total of 30
commercial banks were visited during the actual data collection where the branch managers
were interviewed. The study estimated an R
2
of 0.501, implying that 50.1 % of changes in the
bank's performance are explained by the independent variables. It further revealed that
mobile banking (jJ = 0.402, P = 0.001) and agency banking (jJ = 0.179, P = 0.050) had
significant positive effects on banks performance. It is thus, recommended that use of mobile
banking and agency banking be enhanced for improved performance. The study findings may
help the bank managers in the financial planning and provide literature for further research in
the banking sector. | en_US |
