The Influence of Financial Literacy on Organizational Performance Selected of Commercial Banks in Uasin Gishu County, Kenya

Author: Vallary Jepchirchir, Dr. John K. Tarus, Dr. Emmanuel Tanui

Date: 2025

Abstract: The purpose of the study was to investigate the Influence of Financial Literacy on Organizational Performance Selected of Commercial Banks in Uasin Gishu County. This study was guided by the following theory; the systems theory of financial inclusion.The study targeted 748 employees. This study employed a stratified random sampling to select a sample of 261 respondents determined by yamane formula. The study used questionnaires as the data collection tool. The study tested for reliability and validity and pilot study carried out in Nakuru County. Both descriptive and inferential statistics were utilized. Multiple regression analysis was used to determine the effect of financial inclusion on organizational performance whereas hierarchical multiple regression was adopted to test for the moderating effect. Results showed that a positive and significant effect of financial literacy (β = 0.289, p < 0.001). In conclusion, the study asserts that financial literacy, technology adoption, Based on the findings, financial literacy is key to improving bank performance, as it facilitates clear communication about borrowing products and helps customers understand the various types of deposit accounts available. The ability of employees to guide customers in selecting the appropriate deposit account significantly enhances customer satisfaction and retention. Additionally, effective promotional materials that clearly outline the benefits of financial products are essential for ensuring that customers are wellinformed. Furthermore, the communication of product features is critical, and ongoing improvements in this area can strengthen customer engagement. Providing adequate resources to help customers understand investment options empowers them to make informed decisions, ultimately contributing to enhanced performance and customer loyalty. Consequently, prioritizing these elements will enable banks to optimize their operations and better serve their clientele in a competitive market..Based on the findings on financial literacy, the study recommends that regulators should implement standardized financial literacy programs in partnership with banks, ensuring that customers have access to essential financial knowledge. These initiatives should be designed to empower consumers to make informed decisions about financial products, particularly targeting vulnerable populations. Banks management can further enhance financial literacy by investing in comprehensive educational programs that use engaging content delivered through workshops, online courses, and informational webinars. Additionally, bank managers should prioritize training staff in financial literacy concepts to ensure they can effectively communicate with customers. By fostering a knowledgeable workforce and enhancing financial literacy initiatives, banks can improve customer understanding and satisfaction, ultimately boosting overall performance.

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