Abstract
Financial institutions are adapting to changes in technology through the development of innovative alternative banking services such as mobile banking due to its ability to help them minimize costs and maximize profit. Despite this, clients continue to report that their money was transferred from their account without their permission and this raises concerns about information security as well as inefficient operations and time-consuming procedures. There was need therefore to establish the effect of technological scalability on performance of financial institutions in Kenya. This study adopted cross-sectional research design and targeted all Relationship managers, General Managers, Customer service managers and System administrators from financial institution who were 357 respondents as they were conversant with the effect of blockchain on performance. Data was analysed using both descriptive and inferential statistic using SPSS version 27 software. The overall average mean of 2.96 (SD = 1.48) indicates a moderate level of agreement with technological scalability statements, suggesting that while institutions have made some progress in building flexible, adaptive digital capacity, there remains room for improvement particularly in leveraging technology to directly enhance customer experience and in systematically assessing transformation across different service areas. The study recommends that financial institution should fully embrace technology since it uses less resources and facilitate financial accessibility as well as technology so as mitigate on the effect of financial instability. Financial institution strategy should be reviewed so as to align with the ever-changing financial environment by incorporating the use of innovative approach and new digital technologies hence improve on customer experience as well as overall operational performance.