Abstract:
The quest for financial inclusion in the Kenyan banking industry has led banks to innovate in
order to reach more customers. The main objective of this study was to examine the effe
cts of
technological innovations on financial inclusion initiatives by banks within Nakuru town in Kenya.
The study examined the effect of agency banking on financial inclusion initiatives by banks in
Nakuru County. The study adopted descriptive research d
esign. The target population was
commercial banks within Nakuru town. The study used two questionnaires to collect primary
data. All 29 bank questionnaires were filled thus 100% response rate. From 140 customer
questionnaires only 120 were filled represent
ed by 87.5% response rate. The study found that
technological innovations increase sales, they lead to profit increment; they provide better,
increase quality of service and assure the survival of the bank. The study concludes that the
banks had employed v
arious technological innovations. The study recommends adoption of new
technological innovations to provide constant access to certain core services reducing the need
to interact with bank staff for many people. The study also recommends that another study
be
done to investigate the factors influencing technological innovations in the financial institutions
and other sectors in Kenya.
