Advancement of Commercial Banks Financial Advisory Services as Delivery Mechanism of Financial Literacy for Financial Inclusion in Kenya

Abstract

  ABSTRACT

This research aimed to assess the influence of financial advisory services as a channel of financial literacy delivery on financial inclusion of commercial banks in Kenya. Prospect theory was the theoretical framework used, and the descriptive survey was the research approach taken. The population was the 10,717 management staff of the 40 banks engaged in commercial activities in Kenya, with 1,503 branches taking part in the unit analysis. The sample size was 384 respondents, and data were analyzed by means of descriptive statistics, regression, and correlation via SPSS computer software version 23. It was concluded that financial advisory services were a critical factor in improving financial literacy and that full-service banks in Kenya should strive to expand their offering beyond insurance planning advisory services to unlock the full potential of this delivery channel in terms of enhancing financial inclusion. It was recommended that commercial banks in Kenya should increase the use of financial advisory services, such as cash management training, financial planning, investment planning, retirement planning, tax planning advisory services, and credit and debt counseling advisory services. Despite the positive impact of advisory services on financial inclusion, the study found that the provision of these services was low among the banks.

Keywords: Financial advisory services, Financial Literacy, Financial Inclusion, banks, Kenya