Moderating Effect of Bank Size on Relationship between Financial Innovations Adoption and Financial Deepening of Listed Commercial Bank in Kenya
Author(s)
Antony Mwai , Agnes Njeru , Florence Memba ,
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Abstract
Despite commercial entities amplifying financial innovation there is need for empirical inquiry on their contributions towards economic development through financial inclusion and deepening. Financial deepening is the capacity of financial institutions to enhance access to its services. Financial innovations have reduced turnaround time for banking services such as withdrawals, deposit and loan approval process. Despite this documented evidence its contribution to economic development through financial deepening is barren empirical ground. Hence, this paper investigated the relationship between financial innovations adoption and financial deepening of listed commercial banks in Kenya. The study was anchored on technology acceptance model. Expo facto research design was adopted, census of 12 listed commercials was considered for five years. A significant relationship between financial banking innovations and financial deepening was reported. Also, there was significant moderating effect of bank size on the relationship between financial innovations adoption and financial deepening of listed commercial banks
Keywords
Financial innovations, Financial deepening, bank size
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