Effect Open Banking Lending Services on the Financial Sustainability of Commercial Banks

Patrick Kivale, Charles Tibbs Yugi and Gerald Musiega Managi

Journal of Accounting and Finance in Emerging Economies, 2025, vol. 11, issue 3, 333-344

Abstract: Purpose: To assess the effect Open banking lending services on the financial sustainability of commercial banksDesign/Methodology/Approach: The research design used was a descriptive study that sought to capture the prevailing situation in lending innovations and its effect on financial sustainability. The sample was restricted to commercial banks in Kenya which are divided into Tier 1, Tier 2 and Tier 3 banks where the total population of the sample was 7 Tier 1 banks, 19 Tier 2 banks and 13 Tier 3 banks. The stratified random sampling method was employed to identify a representative sample, and this ensures that insights are captured in various bank types. Data were collected with a structured questionnaire, The reliability and validity of the instrument was assessed with a pilot study, using Cronbach’s alpha as a measure of internal consistency, Keiser- Meryer -Olkin (KMO) was used to assess construct validity. Data Analysis: The assumptions of Classical Linear Regression Model (CLRM) such as linearity, normality, homoscedastic were tested. The findings were presented in form of descriptive and inferential analysis such as regression coefficients, significance levels and graphical analysis to represent major findings.&&Findings: The findings of the study indicated a positive significance effect between open banking and financial sustainability (R=0.731, P=0.001)Implications/Originality/Value:There was adequate evident to reject the null hypothesis that posits, Open banking has no significant positive effect on the financial sustainability of commercial banks in Kenya.

Keywords: Commercial banks in Kenya; Financial sustainability; Open Banking (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/3383/1906 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:src:jafeec:v:11:y:2025:i:3:p:333-344

DOI: 10.26710/jafee.v11i3.3383

Access Statistics for this article

More articles in Journal of Accounting and Finance in Emerging Economies from CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan Contact information at EDIRC.
Bibliographic data for series maintained by Rabia Rasheed ().