ANALYZING DIGITAL PRESENCE AND ITS IMPACT ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA USING THE WEBIX MODEL AND MULTIPLE REGRESSION ANALYSIS

Authors

  • Esther Wanjiru Wachira PhD Candidate, Faculty of Business and Economics, University of Pécs, Hungary
  • Virginia Kirigo Wachira School of Business and Economics, Meru University of Science and Technology, Kenya

DOI:

https://doi.org/10.46827/ejefr.v9i1.1942

Keywords:

digital presence, websites, financial performance, speed, connection, appearance, complexity

Abstract

Recently, the Kenyan financial sector has witnessed digital evolution. Kenyan commercial banks have been forced to adjust rapidly to this digital evolution to achieve a competitive advantage and improve their financial performance. This study aimed to investigate the relationship between digital presence and the financial performance of commercial banks in Kenya. Data was collected from the websites of all commercial banks in Kenya, while secondary data was collected from audited published financial statements, financial reports of the commercial banks, and the Central Bank of Kenya. Profitability measured financial performance, while the WEBIX model was used to investigate the level of digital presence of commercial banks in Kenya. The study using the WEBIX model, technical and content analysis of the websites of all the commercial banks in Kenya, found that commercial banks in Kenya are gradually moving from Web 1.0 solutions to Web 2.0 solutions by linking their social media accounts to the website. The study also found that commercial banks in Kenya are still in the second (emerging) level of digital maturity. Multiple regression analysis found a statistically significant relationship between the digital presence and the financial performance of commercial banks in Kenya. The study concluded that the policymakers and the management of commercial banks should continually emphasize the importance of investing in digital assets, strategies, and infrastructure to steer the banks through this evolving and dynamic financial landscape. The study also recommends further research using mediating or moderating variables. The researchers believe that the originality of this study will be beneficial to managers of commercial banks.

JEL: G21, G20, L25, O30

 

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Author Biographies

  • Esther Wanjiru Wachira, PhD Candidate, Faculty of Business and Economics, University of Pécs, Hungary

    Esther Wanjiru Wachira holds a Bachelor's degree in Business Computing from Makerere University (Uganda), a Master's in Business Administration-Finance Option from Kenyatta University (Kenya), and is currently pursuing her Ph.D. Business Administration from the University of Pécs (Hungary). Her main areas of interest are Fintech, Blockchains, Cryptocurrencies, and Financial and digital Innovations in the banking sector.

  • Virginia Kirigo Wachira, School of Business and Economics, Meru University of Science and Technology, Kenya

    Virginia Kirigo Wachira holds a PhD in Business Administration-Finance Option from Kabarak University (Kenya), a Master's in Business Administration-Finance Option from Kenyatta University (Kenya), and a Bachelor's degree in Accounting and Economics from Nairobi University (Kenya). She has vast experience in lecturing at Institutions of Higher learning and Universities in Kenya. Her main areas of interest are Financial Statement Analysis, Money and Banking, Financial Innovations, Fintech, and Financial Accounting, among others.

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Published

2025-05-14

Issue

Vol. 9 No. 1 (2025)

Section

Articles