Effect of financial technology adoption on bank performance in South Sudan: a case study of Kenya commercial bank ltd.

Abstract

The study examined the effect of Financial Technology adoption on bank performance in South Sudan with Kenya Commercial Bank as the case study. The study was guided by the following objectives; to evaluate the effect of technological innovations on bank performance in Kenya Commercial Bank, South Sudan, to analyze the effect of institutional factors on bank performance in Kenya Commercial Bank, South Sudan and to determine the effect of social demographic factors on bank performance in Kenya Commercial Bank, South Sudan. The study employed a mixed-methods approach, combining phenomenological and descriptive designs, with a case study strategy focused on Kenya Commercial Bank to examine fintech and bank performance. A cross-sectional design was used, targeting a population of 110 staff and clients, with a sample of 86 determined using Slovene’s formula. Both purposive and simple random sampling techniques were applied to select relevant staff and clients, ensuring rich, valid, and representative data for analysis. The study collected both primary and secondary data using self administered questionnaires, interviews, and document reviews to examine fintech and bank performance at Kenya Commercial Bank, Juba. Validity was ensured through content validity testing, while reliability was confirmed using test-retest and Cronbach’s alpha, yielding an overall reliability of 0.823. Data were analyzed using SPSS 25 for descriptive and inferential statistics, with qualitative findings triangulated for deeper insights and accurate interpretation. The study found that technological innovations have a very weak but statistically significant positive effect on bank performance at Kenya Commercial Bank, South Sudan (r = 0.046, p = 0.003; F = 7.166). Institutional technological factors showed a weak positive but not statistically significant relationship (r = 0.211, p = 0.060; F = 3.635). Social demographic factors had a weak negative and non-significant effect on performance (r = -0.143, p = 0.205; F = 1.635). The study concludes that technological innovations have a statistically significant but minimal effect on Kenya Commercial Bank’s performance, explaining only 0.2% of variance, while institutional technological factors show a weak, non-significant positive effect (4.5% variance), and social demographic factors have a weak, non-significant negative effect (2.1% variance). The study recommended that Bank Management should invest in integrated digital platforms that streamline operations, improve transaction speed, and enhance customer experience and employees should participate in continuous training and development programs to enhance skills in using institutional technological systems.