Research on the Impact of Fintech on the Performance of Commercial Banks

Over the past half-decade, a lot of change has been experienced in the banking sector. This ranges from regulatory reforms, technological shifts especially on mobile and internet banking, intensified financial innovations, internalization and heightened competition from other players. Although some banks may have recorded good performance in the period under assessment, most of the commercial banks have recorded dwindling performance. This study was interested in determining the effect of change management practices on performance of commercial banks in Nyeri County, Kenya. Specifically, the study aimed to establish the effect of stakeholder involvement on performance of commercial banks; to establish the effect leadership on performance of commercial banks; to assess the effect of organisational learning on performance of commercial banks, and to determine the effect of communication on performance of commercial banks in Nyeri County, Kenya. The study was guided by McKinsey 7-S Change Model, Kotter's Eight Step Model, Resource Dependence Theory, and Kurt Lewin’s Model. A descriptive survey research design was utilised. The target population comprised of 15 banks in Nyeri County, Kenya. The study used a census approach. The study used purposive sampling to select branch managers, accountants, credit managers, and marketing managers of all the commercial banks as the choice class of respondents. The study considered non-financial performance of the banks for five (5) financial years 2012-2017. Primary data was collected through questionnaires while secondary data was extracted from the financial and management reports and corporate handbooks. Cronbach’s Alpha Reliability test was used to test the instruments for reliability while expert opinion assessed the validity status of the instrument. The study used descriptive and inferential analysis. The study targeted all the commercial banks in Nyeri County, Kenya. The study targeted sixty respondents who were the top management of the commercial banks. Questionnaires were used as the main tool of data collection in the study. The researcher used the drop and pick method to administer the questionnaires. The data was coded and entered into Statistical Package for Social Science (SPSS) where both descriptive analysis and inferential analysis of multiple regression analysis was done. The study found that stakeholder involvement had a positive and significant effect on performance of commercial banks in Nyeri County, Kenya. Leadership had the largest positive effect on performance while organization learning had the least but positive effect on the performance of commercial banks in Nyeri County, Kenya. The study concluded that communication had significant and positive effect on performance of banks in Nyeri County, Kenya. As established from the multiple regression analysis the results affirmed that stakeholder involvement, leadership, organization leaning and communication had significant effect on performance of commercial banks in Nyeri County, Kenya. The study recommends improvement of organization learning which was found to be deficient through development of mentorship programs and up scaling the level of employee training and development.

An increasing number of banks in Kenya are launching newer mobile banking platforms which has led to increase in competition in the banking sector, where each commercial bank is penetrating to ensure that they keep in their competitive perspective and attract more likely customers by bringing the services of mobile banking next to their doorsteps. However, it is not clear how characteristics of a firm and management of risks influence the relationship the services of mobile banking and performance of banks in Kenya. The main objective of this research was to find out the relationships among the services of mobile banking, management of risks, characteristics of firms and performance of banks in Kenya. The specific objectives were: to evaluate the effect of mobile banking services on performance of banks, to institute the effect of risk management on the state between mobile banking services and performance of commercial banks, to investigate the effect of firm characteristics on the relationship between mobile banking services and performance of commercial bank and finally, to determine the combined effect of mobile banking services, risk management and firm characteristics on performance of banks. This study used the CAMELs Model evaluation system that examines capital adequacy, asset quality, management capacity, income, and liquidity of banks and therefore establishes the overall unsoundness of banks to measure operation. The study used a positivism research philosophy and descriptive research design. The study consisted of 43 commercial banks and utilized correlation and regression analysis to institute the relationship among mobile banking services and performance of bank. The Baron and Kenny (1986) formulation was used to test the intervening and moderating effect of management of risks and firm characteristics respectively on the relationship between mobile banking services and banks performance. Finally, the multiple regression analysis was used to test the joint result of mobile banking services, risk management, and firm characteristics on the banks performance H01 results indicate that a significant relationship between account-to-account transfer, mobile money, and the performance, H02 indicate that the relationship between mobile banking services, liquidity risk and bank performance is statistically significant whereas the relationship between mobile banking services, market risk and performance is not statistically significant. H03 indicate that the size of a firm have no significant effect on the relation between mobile banking services and performance of banks and H04 indicate that mobile banking services, risk management and firm characteristics have significant effect on the performance of commercial banks. The study is contributing to the theory of information systems since it has shown how increase in the use of mobile banking services which leads to improved performance of banks. The study recommend to regulators to ensure management of risks is adhered to in mobile banking services by commercial banks in Kenya to better operation.

The performance of commercial banks in Kenya determines the financial position of the nation. This performance, over the past period, has not been inspiring and various reforms have been put in place in to increase it. Yet, performance of commercial banks on average has been erratic. The business environment in which the commercial banks function is turbulent, and it is through understanding the environmental forces, that they can improve their performance. The study’s general objective involved finding out the impact of environment factors on Commercial bank’s Performance. Specifically, the study focused on the following objectives; to find out the influence of the organizational resources on the performance of the commercial banks in Kenya; to determine how organizational structure influences the performance of commercial banks in Kenya; to establish the influence of competition on the performance of the commercial banks in Kenya; and to establish the moderating effect of government policies on the influence of environmental factors on performance of commercial banks in Kenya. The contingency theory, resource based view and the theory of competitive advantage informed this study. The research employed a descriptive research design. The population of this study comprised of the 43 commercial banks operating in Kenya. The study targeted the head office of each of the commercial banks and the respondents were the marketing managers. A pilot study was conducted using customer experience executives of four commercial banks. The study conducted a census of the 43 head marketing managers of the financial Institutions in Kenya. The study used structured questionnaires to collect data. The study used face, content and construct validity and reliability was measured using the Cronbach’s Alpha coefficient. Analyzing of data was done through descriptive and inferential statistics using the SPSS software. The findings were presented using charts, tables, and graphs. The study concludes that organizational resources had significant influence on performance with and without government policies. Organizational structure had a great impact on commercial banks performance. Competition had significant influence on performance of commercial banks with or without the moderating influence of government policies. The government policy had significant moderating influence in the relationship between environmental factors and performance of commercial banks. The research recommends that the top management team of all commercial banks operating in Kenya should improve on their organizational resources by ensuring adequate number of employees is in place in various departments and functions. The management of all firms in the financial sector in Kenya should improve on their structures by engaging subordinate staff in decision making on daily operations of the firm. The management team of all commercial banks should come up with better strategies of remaining competitive in the industry in view of other industry participants with similar product offering like other banks, microfinance institutions and SACCOs. The Central Bank of Kenya should increase its supervisory and monitoring role among commercial banks to positively influence their performance. There is need for strong market intelligence to collect information on products and services of competitors for constant improvement and thus performance among commercial banks.

The study attempts to examine the relationship of market structure variable with the performance of Nepalese commercial banks over the period 2011-2015 using causal research design. The stratified sampling technique has been employed to select sample banks which include 10 commercial banks comprising 5 joint venture and 5 local private banks. A pooled OLS model is specified, and then the indicators of market structure are used as explanatory variables in the regression model. Study results have shown that market concentration has had a negative and significant impact on the performance of the Nepalese commercial banks. Where the Herfindahl-Hirschman index (HHI) is used the market shares as the main variable to measure the concentration (CONC). Empirical results revealed that lower the market concentration higher will be the performance of the bank. On the other hand, study concluded that market power has positive influence on profitability. The Data Envelopment Analysis (DEA) method was used to assess the efficiency scores. On the contrary, empirical results indicated that there is no relationship between the bank’s efficiency and performance in Nepalese commercial banks. As far as the ownership structure is concerned, study found that, ROA differences depend on bank ownership types. Study concluded that performance of the joint venture banks is better than local private banks in sample period.

Purpose: Commercial banks play a crucial and dynamic role in driving a country’s economic development. An efficient, effective, and well-regulated banking sector contributes to accelerated growth in multiple sectors of the economy. This paper analyzes the impact of internal factors on the performance of banks in Albania. Return on assets (ROA) is used as a proxy to measure the performance of commercial banks in Albania. Additionally, evaluates the impact of the COVID-19 pandemic on the performance of Albanian commercial banks. Methodology: This study combines two primary lines of data research. Initially, descriptive statistics are provided for both independent and dependent variables. The regression model utilized in the analysis relies on panel data, specifically quantitative data that explains the performance of commercial banks through the explanatory variables. Focusing on nine commercial banks in Albania from 2017 to 2021, the fixed effects model assesses the relevance of specific bank-related factors affecting their performance. Furthermore, this research paper investigates the impact of a COVID-19 dummy variable included in the analysis, hypothesizing that strong banking systems help economies survive adverse shocks and maintain the financial system’s stability. Findings: The findings show that all internal factors such as bank size, efficiency ratio, and liquidity risk, are statistically significant, while the COVID-19 pandemic dummy variable did not have a statistically significant impact on bank performance in the case of Albanian banks. Value: This study makes a significant contribution by examining the performance of banks in Albania over recent years, utilizing the latest publicly available data. Additionally, it enhances the existing literature by introducing a focus on the COVID-19 dummy variable, a subject that has received limited attention from other researchers to its impact on banking performance. This investigation is expected to motivate a variety of stakeholders, including bankers, banking regulatory authorities, and the broader financial system, to engage with its findings.

The COVID-19 pandemic has significantly impacted the global economy, and the non-performing loans (NPLs) have become a pressing issue for commercial banks in Sri Lanka. It is doubtful how the NPLs and COVID-19 Pandemic have affected the performance of commercial banks in Sri Lanka. Thus, the purpose of this study is to investigate effects of non-performing loans & COVID-19 pandemic on the performance of Sri Lankan commercial banks for the period of 2011 - 2021. The panel data regression analysis was used to investigate the effects of non-performing loans & COVID-19 pandemic on the financial performance of Commercial Banks. The results of the analysis revealed that non-performing loans and the pandemic period have a negative impact on the profitability of commercial banks in Sri Lanka. Thus, this study is useful for bank management officials to protect banks from crises and create ideas to enhance the performance of banks.

Taking employee satisfaction as the mediating variable, this paper explored the relationship between promotion incentives, employee satisfaction and performance of Chinese commercial Banks by constructing a game model, and took 30 listed commercial banks from 2009 to 2018 as samples to empirically test the conclusions. Research shows that promotion incentive can significantly improve the performance of commercial Banks, and this incentive effect is more significant in state-owned commercial Banks. Further research shows that employee satisfaction plays a part in mediating between promotion incentive and performance of commercial Banks, that is, promotion incentive can improve performance of commercial Banks by improving employee satisfaction. The research conclusion enriches the research on the path of promotion incentive on the performance of commercial Banks and provides some inspirations for the design of incentive schemes for employees of commercial Banks.

This study aims to examine and analyze the effect of risk variables, governance, financial performance, capital structure, asset structure, intermediation and human capital functions on the social performance of sharia commercial banks and conventional commercial banks as well as to test and analyze the influence of risk variables, governance, financial performance, capital structure, asset structure, intermediation functions and human capital towards social differences in performance between conventional and sharia commercial banks. The type of research used in this study is explanatory research, roomates explains the influence of independent variables on the dependent variable and comparative research, the which is research that is used to explain variables that influence the differences in social performance of Islamic banks and conventional commercial banks. The Populations in this study are commercial banks (conventional) and Islamic public banks in Indonesia. The purposive sampling technique was used to Obtain samples items, namely commercial banks (conventional) and sharia commercial banks in Indonesia to publish audited financial reports, annual reports and Reviews those that corporate social responsibility reports submitted between 2013 - 2017. Technical Data analysis used multiple regression and discriminant analysis. The analysis in this study tested the hypothesis. Multiple regression is used to analyze variables that Affect the social performance of conventional commercial banks and Islamic commercial banks. While discriminant analysis is used to analyze what variables influence the social performance of conventional public commercial banks and Islamic banks in Indonesia. Based on the results of the analysis and discussion concluded that (a) the variables of governance, capital structure, asset structure of human capital, risk, intermediation function and financial performance have no significant effect on the social performance of sharia commercial banks; (B) risk and financial performance variables have a significant effect on the social performance of conventional commercial banks. While the variables of governance, capital structure, asset structure of human capital, and intermediation function have no significant effect on the social performance of conventional commercial banks and (c) the variables of risk and financial performance have a significant effect on the performance of social Distinguishing between commercial Islamic banks and conventional commercial banks. While the variables of governance, capital structure, asset structure of human capital, and intermediation function do not Significantly influence between social performance of commercial Islamic banks and conventional commercial banks.

In Kenya, fierce competition from both the banking industry and mobile telephony carriers which offer creative alternative offerings to traditional banking products, emphasizes the need for strategic orientation. Particularly, though Family bank continues to deploy new products and services while leveraging technology and building relationships with customers, it is yet to upgrade towards the intended tier 1 status. The bank continues to experience slow growth rate despite numerous strategies being formulated by the firm. In 2018, non-performing loans went up to Ksh 4.7 billion and interest income reduced by 50% in the first half to June as lending went down. Family bank’s low market share raises the question on the effects of strategic orientation practices on the performance of the firm. The objective of the study was to establish the influence of strategic orientation on performance of commercial banks in Kenya, a case study of Family Bank Ltd. The specific objectives of the study were to; assess the effect of technological orientation on the performance of commercial banks in Kenya, assess the effect of entrepreneurial orientation on the performance of commercial banks in Kenya and examine the effect of customer orientation on the performance of commercial banks in Kenya. This study was anchored on three main theories; Resource Based View Theory, Contingency Theory and Mckinsey 7S Model. The study was based on descriptive research design. The target population of the study was all the 31 Family bank branches based in Nairobi County. Census sampling technique was adopted and hence all the 31 targeted branches participated in the study with 171 managerial employees as the respondents. Data was collected using questionnaires. The collected data was analyzed using descriptive and inferential analysis. SPSS version 26.0 aided in the analysis of the data. Tables and figures were used to present the collected data. The study found that technological orientation has a positive and significant effect on the performance of commercial banks in Kenya (β=0.480, P-value=0.000). The study also found that entrepreneurial orientation has a positive and significant effect on the performance of commercial banks in Kenya (β=0.223, P-value=0.000). Further, the study found that customer orientation has a positive and significant effect on the performance of commercial banks in Kenya (β=0.480, P-value=0.000). The overall regression model of the study revealed that strategic orientation was a good predictor of organizational performance. The study concluded that strategic orientation has a significant effect on the level of organizational performance (adjusted R-square= 0.666). The study recommended that commercial banks in Kenya should enhance the adoption of strategic orientation in order to improve their performance and more so in new product development to enable them carve out new market niche for their goods and services, making them more competitive in the sector.

The study's overarching goal looked at the impact of Kenyan commercial banks' digitization policies on their performance. The financial industry has been undergoing technological advancements which effectively hinders their ability to cope with market forces which threaten their profitability and growth, financial inclusivity, competitiveness and survival. Kenyan commercial banks are in the process of executing various digitization strategies to enable them fight against increased competition and new market demands hence each individual bank has to provide services that meets these needs. The study provides an analysis and evaluation of the influence of education level on performance, influence of cost of services on performance, the influence of users’ age and gender on performance and to establish the effect of customers’ security concerns on performance of commercial banks in Kenya. The data was examined using descriptive statistics, and the connection between the independent variables of education, age, cost, and security concerns and the dependent variable of success assessed using linear regression analysis. For ease of comprehension, data was presented as frequency tables, bar graphs, and pie charts. According to the findings, cost and security concerns was an important factor with a substantial impact and positive influence on digitization strategies that influence performance of commercial banks in Kenya. Moreover, the findings revealed that education, age and gender of customers did not have a tremendous impact on the performance of Kenyan commercial banks though adoption of digitization. This was evident from the results showing that both male and female customers from all ages are well educated to understand the convenience of digital banking and prefer using digital platforms to transact. The study concluded that through digitization strategies, education, age, gender, cost and security concerns enhanced performance in Kenyan commercial banks. The research revealed that commercial banks, through their leadership, appreciate digitization strategies to boost performance through adoption of cost effective and secure platforms that target banking products targeting age and gender. The commercial banks should ensure that their digital platforms are well secured, cost effective and well marketed to their customers of all ages who clearly understand the importance of these platforms.

This study investigates the impact of strategic planning on organizational performance and survival of Nepalese commercial banks. Organizational performance is the dependent variable. The selected independent variables are organizational structure, environmental scanning, strategy implementation, strategy formulation, strategy evaluation and control. The primary source of data is used to assess the opinions of the respondents regarding the strategic planning and its impact on survival and performance of commercial banks in Nepal. The study is based on primary data of 16 commercial banks with 125 respondents. To achieve the purpose of the study, structured questionnaire is prepared. The correlation coefficients and regression models are estimated to test the significance and importance of strategic planning on performance and survival of Nepalese commercial banks. The study showed that organizational structure has a positive impact on organizational performance. It indicates that better organizational structure is associated with sound performance and survival of banks. Similarly, environmental scanning has a positive impact on organizational performance. It implies that prior environmental scanning stimulates the organizational performance. Similarly, strategy implementation has a positive impact on organizational performance. It reveals that proper strategy implementation drives the organizational performance. The study also showed that strategy formulation has a positive impact on organizational performance. It indicates that feasible and suitable strategy formulation stimulates the organizational performance. Furthermore, strategy evaluation and control has positive impact on organizational performance. It indicates that proper and on time strategy evaluation and control drives the organizational performance.

This study examines the impact of information and communications technology parameters on the performance of Nepalese commercial banks. Bank performance is selected as the dependent variable. The selected independent variables are mobile banking, internet banking, POS banking, QR code banking, SMS alert system, ATM banking and internet security features. The primary source of data is used to assess the opinions of the respondents regarding information and communications technology parameters, its usage, and its impact on the performance of Nepalese commercial banks. The study is based on primary data with 120 respondents. To achieve the purpose of the study, structured questionnaire is prepared. The correlation coefficients and regression models are estimated to test the significance and importance of information and communications technology parameters on the performance of Nepalese commercial banks. The study showed that internet security features have positive impact on the performance of banks. It indicates that stronger internet security leads to increase in performance of banks. Similarly, mobile banking has a positive impact on the performance of the banks. It indicates that increase in the usage and availability of mobile banking services leads to increase in the level of bank performance. Moreover, POS banking has a positive relationship with the performance of the banks. It indicates that the utilization of POS banking services leads to increase in the level of bank performance. Furthermore, internet banking has a positive impact on performance of banks. It indicates that increase in the usage and adoption of internet banking services leads to increase in the level of bank performance. Likewise, QR code banking (QR) has a positive impact on the performance of the banks. It indicates that the better implementation of QR code banking services leads to increase in the level of bank performance. Similarly, SMS alert system has a positive impact on the performance of the banks. It indicates that the better implementation of SMS alert systems leads to increase in the level of bank performance. Further, ATM service has a positive impact on the performance of the banks. It indicates that increase in the usage and availability of ATM services leads to increase in the level of bank performance.

Purpose: The paper aims at examining the impact of work-family balance (WFB) practices on HR performance in Nepalese commercial banks – private and foreign joint venture banks. Methodology: The study was based on a survey administered from April to June of 2019 on 252 supervisory bank employees selected through a simple random sampling technique from five commercial banks, and garnered 240 usable (posting a success rate of above 95%). It made use of a descriptive analysis, one-way ANOVA test, multicollinearity test, and correlation and linear regression analyses. Findings: The regression analyses churned out the results that WFB practice – measured in terms of flexi-time, job sharing, telework/telecommuting, and leave policy – significantly impacted HR performance in Nepalese commercial banks. Implications: The study findings imply that organizations should properly manage work-family balance of their human resources to help improve their performance that would ultimately help the organizations achieve their goals. Originality: The originality of this study lies in the fact that there is an extreme paucity of WFB studies in Nepal; and even those few studies probed, not into the impact of WFB on HR performance in commercial banks, but into relationship with HR engagement, career success, and job satisfaction in non-banking organizations.

This paper adds empirical evidence on the relationship between capital structure and the performance of commercial banks. We use balance sheet data of 25 joint stock commercial banks operating in Vietnam from 2011 to 2021. ROE measures the performance, and the total debt ratio is the explanatory variable. Regression techniques REM, FEM, and FGLS were used to explore this relationship. The results show that there is no evidence to confirm the impact of capital structure on the performance of banks. Also, the paper shows the positive effects of the control variables on the performance of joint stock commercial banks in Vietnam.

The main purpose of this study is to examine the relationship between risk and performance of commercial bank in Malaysia. This study aims to investigate the impact of bank-specific factors which include liquidity risk, operational risk, and credit risk (microeconomic factors) and gross domestic product (GDP) and inflation rate (macroeconomic factors) on the performance of Malaysian commercial bank over the period of 2011 to 2015. The bank performance is measured by Return on Assets (ROA). The results imply that ratios employed in this study have different effects on the performance of bank. In this study, the findings show that only GDP has positive relationship with ROA. Four factors namely liquidity risk, operational risk, credit risk, and inflation rate have negative relationship with the ROA.