Financial innovations and bank performance in Kenya: Evidence from branchless banking models

Background: Kenya has become the epicentre of branchless banking financial innovations in the last decade, effectively attracting global research interest. Aim: This article examines the relationship between financial innovation and the financial performance of 42 commercial banks in Kenya. Setting: The financial innovations covered are the branchless banking models, which represent a departure from the traditional branch-based banking. More specifically, the financial innovations covered are: mobile banking, agency banking, internet banking and automated teller machines. Methods: We use the Koyck dynamic distributed lag model to estimate the relationship between financial innovations and bank financial performance. The model has been using dynamic panel estimation with system generalised method of moments. Results: The results show that financial innovations significantly contribute to bank financial performance, and that firm-specific factors are more important in determining the firm’s current financial performance than industry factors. Conclusion: We provide evidence that financial innovations generate good results for the shareholders, suggesting that shareholders are the primary beneficiaries of financial innovations used by commercial banks

Financial innovation, firm performance and the speeds of adjustment: New evidence from Kenya’s banking sector

This article examines the speed of adjustment of firm performance to financial innovations usage and the speed of adjustment of financial innovation to financial innovation drivers for banks in Kenya. We used the Koyck distributed lag model, which is estimated using dynamic panel estimation with System Generalised Method of Moments. We find that it takes on average 1.179 years for bank financial performance to adjust to the four financial innovations studied. Secondly, it takes less than a year (0.368 years) to accomplish 50% of the total change in firm performance following a unit-sustained change in the financial innovations. Moreover, mobile banking has the shortest mean lag (2.849), while Automated Teller Machines (ATMs) have the longest mean lag (4.926). Notably, it takes approximately three years for mobile banking to adjust to financial innovation drivers at firm level and on average five years for ATMs to adjust to the financial innovation drivers

Basic Formal Education Quality, Information Technology and Inclusive Human Development in Sub-Saharan Africa

This study assesses the relevance of basic formal education in information technology for inclusive human development in 49 countries in sub-Saharan Africa for the period 2000-2012. The question it aims to answer is the following: what is the relevance of basic formal education in the effect of mobile phone penetration on inclusive human development in sub-Saharan Africa when initial levels of inclusive human development are taken into account? The empirical evidence is based on instrumental quantile regressions. Poor primary education dampens the positive effect of mobile phone penetration on inclusive human development. This main finding should be understood in the perspective that, the education quality indicator represents a policy syndrome because of the way it is computed, notably: the ratio of pupils to teachers. Hence, an increasing ratio indicates decreasing quality of education. It follows that decreasing quality of education dampens the positive effect of mobile phone on inclusive development. This tendency is consistent throughout the conditional distribution of inclusive human development. Policy implications for sustainable development are discussed

The Comparative Economics of ICT, Environmental Degradation and Inclusive Human Development in Sub-Saharan Africa

This study examines how information and communication technology (ICT) could be employed to dampen the potentially damaging effects of environmental degradation in order to promote inclusive human development in a panel of 44 Sub-Saharan African countries. ICT is captured with internet and mobile phone penetration rates whereas environmental degradation is measured in terms of CO2 emissions per capita and CO2 intensity. The empirical evidence is based on Fixed Effects and Tobit regressions using data from 2000-2012. In order to increase the policy relevance of this study, the dataset is decomposed into fundamental characteristics of inclusive development and environmental degradation based on income levels (Low income versus (vs.) Middle income); legal origins (English Common law vs. French Civil law); religious domination (Christianity vs. Islam); openness to sea (Landlocked vs. Coastal); resource-wealth (Oil-rich vs. Oil-poor) and political stability (Stable vs. Unstable).Baseline findings broadly show that improvement in both of measures of ICT would significantly diminish the possibly harmful effect of CO2 emissions on inclusive human development. When the analysis is extended with the abovementioned fundamental characteristics, we observe that the moderating influence of both our ICT variables on CO2 emissions is higher in the group of English Common law, Middle income and Oil-wealthy countries than in the French Civil law, Low income countries and Oil-poor countries respectively. Theoretical and practical policy implications are discussed

Tailored environments to study motile cells and pathogens

Motile cells and pathogens migrate in complex environments and yet are mostly studied on simple 2D substrates. In order to mimic the diverse environments of motile cells, a set of assays including substrates of defined elasticity, microfluidics, micropatterns, organotypic cultures, and 3D gels have been developed. We briefly introduce these and then focus on the use of micropatterned pillar arrays, which help to bridge the gap between 2D and 3D. These structures are made from polydimethylsiloxane, a moldable plastic, and their use has revealed new insights into mechanoperception in Caenorhabditis elegans, gliding motility of Plasmodium, swimming of trypanosomes, and nuclear stability in cancer cells. These studies contributed to our understanding of how the environment influences the respective cell and inform on how the cells adapt to their natural surroundings on a cellular and molecular level