Nixon Kawaka Ooko, Dr. Yusuf Muchelule


This study intended to investigate the influence of Digital Banking on financial inclusion among banks in Nairobi City County Kenya. A descriptive survey research was used where the target population was all the 42 licensed banks in Kenya that are operating within Nairobi City County. Various financial inclusion indicators were measured using different forms of technological advancements including, Banking Service Automation and Banking System Integration Technologies, these indicators were premised on influence of Digital Banking on financial inclusion within Nairobi City County. A further robustness check was conducted by computing a composite indicator of financial inclusion to determine how it is affected by digital banking. The study findings reveal significant coefficients and corresponding p-values, indicating meaningful relationships between various factors and financial inclusion outcomes among banks in Nairobi City County, Kenya. Notably banking service automation (β = 0.252, p = 0.018), financial systems integration technologies (β = 0.598, p = 0.000), exhibit substantial associations with financial inclusion. These statistical insights suggest that banking service automation, and financial systems integration technologies, play pivotal roles in influencing financial inclusion initiatives within the region. The conclusions drawn from these findings underscore the importance of technological innovations in driving financial inclusion efforts, highlighting the need for banks and policymakers to prioritize investments in cutting-edge technologies to expand access to financial services. Building upon these conclusions, the study offers recommendations to enhance financial inclusion strategies, including fostering collaborations between banks and technology providers, strengthening regulatory frameworks to support innovation, and promoting digital literacy among underserved populations. By leveraging the insights derived from the statistical analyses, stakeholders can develop targeted interventions aimed at overcoming barriers to financial access and fostering inclusive economic growth in Nairobi City County, Kenya.

Key Words: Digital Banking Technologies, Financial Inclusion, Banking Service Automation, Financial Systems Integration Technologies

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