Influence of Financial Process Innovation on Profitability of Commercial Banks in Mombasa County, Kenya

Description

Due to the complex and highly dynamic nature of the economic environment characterized by uncontrollable events and technological advancement, Commercial banks are continuously engaging in financial innovation as a form of response to these changes. This study investigated the influence of such innovations on profitability under the title ‘‘The influence of Financial Process Innovation on Profitability of Commercial banks in Mombasa County, Kenya.’’ 

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The complex environment faced by banks is as result of post COVID-19 effects, Russia–Ukraine war, global inflation, climate change, and rise in cost of living hence providing a new context in the application of financial innovation. Due to such uncontrollable circumstances, Commercial banks are compelled to come up with new products and creative ways that are cost effective so as to increase profits. The worldwide banking system is therefore transforming from the traditional, physical banking to automation. Commercial banks innovate in order to attain efficiency in service delivery and lower cost of production as marks of a competitive market.

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However, innovation is both a risky and costly venture whose success is not assured.