The study concluded that mobile innovation technologies were essential and

The study concluded that mobile innovation

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technologies and their impact on operations of commercial banks. The study concluded that mobile innovation technologies were essential and necessary for enhanced commercial banks performance Hendrickson and Nichols (2011). 11
Products that have been innovated by use of mobile banking include the M-payments, M- transfers and M-credit (Vaudya,2011). Commercial banks utilize mobile phone to develop application that are used as banking products and services. Due to the mobile banking innovation, mobile phones can be a store of value in bank accounts linked to the mobile phone numbers. This allows customers with linked accounts to transfer funds, access loans or rather business and personal loans (Tiwari et al.2006). In Kenya, commercial banks allow their customers to make direct payments from their accounts through mobile phones. More importantly, the introduction of M-pesa by Kenya leading mobile provider Safaricom enabled mobile phones to be used to make bill payments, buy goods and services and send or receive money. Most commercial banks have had to partner with Safaricom to establish integrated services for enhancing product and service provision (Njiraini and Anyanzwa, 2008). Francisco, Mari and Rafael (2007) in their study established that M-payment, M-credit and M- transfers has a positive effect on commercial banks performance. Another study conducted by Wambari (2009) in Kenya showed that mobile banking is a product for social progress since it allows Small and Medium Enterprises (SMEs) to access to business credit, make payments and access financial services at their premises. Kigen, (2010) notes that mobile banking products have reduced the transactional and overhead costs for SMEs and as such, the SMEs have engaged more with the commercial banks, which results to more output for banks performance. 2.3.2 Automated Teller Machines According to (Ombati, Magutu, Nyamwange and Nyaoga, 2011), the Automated Teller Machines (ATMs) form part of the significant technologies that has revolutionized the commercial banking sector for the last decade. ATMs are cash machines that are used to dispense cash transactions, make deposits, transfer funds and check bank balances (Vila et al., 2013). The ability for ATMs to bring this kind of banking financial innovation is significant to bank operations in that it enhanced efficiency to customers and eliminated costs associated with customers flooding the banking halls (Stefan, 2012). According to Ombati et al., (2011) the innovative technologies advanced by ATMs has made it possible for banks clients to access their funds or rather do financial transactions anywhere in the world. As such, a client wishing to withdraw funds using a VISA or Master Card branded debit 12
or credit cards can do so anywhere in the world where ATMs bare the respective logos. This level of convenience for customers does not only enhance customer satisfaction but makes it possible for commercial banks to access transactions from worldwide global network of financial institutions without incurring relevant costs. As Bahia (2007) notes, the ultimate goal of a

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