Fintech, Asset Portfolio Modeling and Financial Performance of Investment Firms in Kenya

Abstract

The purpose of this study is to determine the influence of fintech asset portfolio modeling on the financial performance of investment firms in Kenya. The study was guided by capital asset pricing model. Both descriptive and explanatory research designs were employed in this study. The study population was 57 investment firms. Data was collected using questionnaires and an in-depth interview guide. The use of robo advice, online asset visualization, use of passive investment funds in managing investment portfolios and asset management services have positive and significant relationship with performance of investment firms. However, automated trading has a positive but insignificant with performance of investment firms. However, personal financial management is negatively and significantly related with performance of investment firms. The study concluded that fintech asset portfolio in the management assets enhance financial performance; however, the services remain underdeveloped in some investment firms. The study thus recommends for the use of fintech asset portfolio in the management firms assets. Robo-advisors may help create an opportunity for asset managers looking for cheaper alternatives to receive advice on how to manage assets.