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and hence save on the costs of conducting cost benefit research in their institutions.3.ScholarsTo the scholars, this study adds value to the already existing body of knowledge as itrecommends ways for improvements of financial performance by embracing the technologyinnovation. Nevertheless, this study serves as a stepping stone for newer research on financialinnovation and their significance within the bank’s financial performance.1.4 General ObjectivesTo establish the effects of bank innovations on the financial performance of commercial banks inKericho county1.5 Specific Objectives1. To determine the effects of mobile banking on the financial performance of commercial banks.2. To examine the effects of Automated Teller Machines on the financial performance ofcommercial banks.3. To determine whether Electronic Funds Transfer influence the financial performance ofcommercial banks.1.6 Research Questionsi.What are the effects of mobile banking on the financial performance of commercial banksin Kericho town?ii.What are the effects of automated teller machine on the financial performance ofcommercial banks in Kericho town?iii.Do electronic fund transfer influence the financial performance of commercial banks inKericho town?6
1.7 Scope of the Study The study aimed at covering 10 commercial Banks licensed by the Central Bank of Kenya(CBK) located in Kericho County. The study examined the effect of innovation and technologywithin the banks that operate in Kericho County. This study was carried out due to the emergingissues in innovation and technology thus becoming a key factor in determining the financialperformance in banks. Therefore, this study aimed at determining how Automated TellerMachines (ATM), Mobile Banking and the Electronic Fund Transfer (EFTs) as emerged couldresult to financial performance as well as banks realizing their objective that is customersatisfaction, maintaining as the market champions, loyalty to customers and their employees andattract more investors. The research study was undertaken in Kericho town as it has severalbanks influenced by its economic growth hence the banking industry is well represented in thislocation. The researcher aimed at utilizing both the primary and the secondary data.1.8 Limitations of the StudyTime was the most limiting factor to this study, moving from one bank to another and interactingwith the various respondents consumed a lot of time. The willingness of the banks to disclose theinformation pertaining their financial performance to the researcher was a hard task, as theconcerned were a bit reluctant on giving the actual data. However, the researcher was able tocurb the time and finance factors to enable the success of the research, by planning her schedulewell and sorting finances from her relatives.