Effect of technological innovations on financial inclusion initiatives by banks in Nakuru town, Nakuru county

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.