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technologies and their impact on operations of commercial banks. The study concluded thatmobile innovation technologies were essential and necessary for enhanced commercial banksperformance 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 developapplication that are used as banking products and services. Due to the mobile bankinginnovation, mobile phones can be a store of value in bank accounts linked to the mobile phonenumbers. This allows customers with linked accounts to transfer funds, access loans or ratherbusiness and personal loans (Tiwari et al.2006). In Kenya, commercial banks allow theircustomers to make direct payments from their accounts through mobile phones. Moreimportantly, the introduction of M-pesa by Kenya leading mobile provider Safaricom enabledmobile phones to be used to make bill payments, buy goods and services and send or receivemoney. Most commercial banks have had to partner with Safaricom to establish integratedservices 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 byWambari (2009) in Kenya showed that mobile banking is a product for social progress since itallows Small and Medium Enterprises (SMEs) to access to business credit, make payments andaccess financial services at their premises. Kigen, (2010) notes that mobile banking productshave reduced the transactional and overhead costs for SMEs and as such, the SMEs haveengaged more with the commercial banks, which results to more output for banks performance.2.3.2 Automated Teller MachinesAccording to (Ombati, Magutu, Nyamwange and Nyaoga, 2011), the Automated Teller Machines(ATMs) form part of the significant technologies that has revolutionized the commercial bankingsector 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 ATMsto bring this kind of banking financial innovation is significant to bank operations in that itenhanced efficiency to customers and eliminated costs associated with customers flooding thebanking halls (Stefan, 2012). According to Ombati et al., (2011) the innovative technologies advanced by ATMs has made itpossible for banks clients to access their funds or rather do financial transactions anywhere in theworld. As such, a client wishing to withdraw funds using a VISA or Master Card branded debit12
or credit cards can do so anywhere in the world where ATMs bare the respective logos. This levelof convenience for customers does not only enhance customer satisfaction but makes it possiblefor commercial banks to access transactions from worldwide global network of financialinstitutions without incurring relevant costs. As Bahia (2007) notes, the ultimate goal of a