Thesis:

Effect of business process re-engineering on financial performance of tier one commercial banks in Kenya

Even if loan portfolios are a necessary asset that regrettably exposes the organization to financial risks, the returns on assets from operations are the sole element that determines the financial performance of commercial banks, which has led to expensive and time-consuming business processes. Business process reengineering (BPR) is a management strategy that seeks to make company processes more efficient. The re-engineering of commercial banks appears to have been delayed. BPR has long been a strategy adopted by commercial banks worldwide to alter their operations and procedures in an effort to boost their bottom line. Kenya's commercial banks are being threatened by money transfer services like Mpesa. Investigating the effect of BPR on the financial performance of Kenya's tier one The goal of this investigation was commercial banks. Finding out how deposit-taking automated teller machines, internet banking, agency banking, and mobile banking impacted the financial performance of Kenya's leading commercial banks was one of the stated objectives. Descriptive research methodology was employed in the study. The 98 business development managers employed at the Nairobi headquarters of Tier 1 banks made up the study's target population. The entire target population was included using the census method. Semi-structured and structured questionnaires were used to collect primary data for the study. Supervisors who were subject-matter specialists in content analysis improved the questionnaire's validity, and internal consistency was used to statistically evaluate the pilot's dependability. After receiving NACOSTI approval, the data collection process got underway. Kenya's tier one commercial banks' financial performance was positively, statistically significantly, and significantly correlated with ATM use (r = 0.449; p = 0.021). The study concludes that Internet banking should be given priority by commercial banks since it would increase their growth and save customers a significant amount of time that they would have otherwise spent standing in line. In order to improve anonymity, the study also suggests that clients be informed about how agency banking operates. In order to design and implement IT in a manner that aligns with business operations, the researcher also suggested that senior management team members communicate often to obtain up-to-date knowledge about organizational business. Further research on the impact of BPR on the financial performance of other financial institutions, such as microfinance firms and Kenyan Saccos, was suggested by the researcher.