The International Journal of Business & Management

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E-commerce had gradually affected the operations of the business and companies especially in the banking sector. The objective of study was to establish the effect of mobile banking on financial performance of commercial banks in Eldoret town. The study adopted innovation diffusion theory. The study adopts descriptive research design. The studies target 32 operational managers of commercial banks in Eldoret. The study used questionnaires. The data obtained was coded, organized and analyzed using SPSS. The inferential statistics involved the use of correlation analysis. Data was presented in form of tables. The mobile banking had significant influence (r =0. 781) on financial performance. The mobile banking had enhanced easy borrowing of loans using the phones hence increasing loaning in the banks and improved financial performance. The Central Bank of Kenya (CBK) should come up strategies decisions which monitor mobile banking transactions in order to reduce fraud and improve mobile banking in commercial banks.


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