There is increased industry convergence in the financial industry in Kenya following the introduction of mobile money transfer services offered by telecommunication players, the registration of micro finances as deposit taking organisations and the entry of internet money transfer agents. These changes have resulted in financial institutions no longer facing competition from among themselves only but also from non banking players. The study objective was to determine the influence of technological innovation on organization`s performance. The study covered all commercial banks branches in Meru county. There are 20 registered commercial banks in Meru county which are registered with the Meru county government. In this study a descriptive research design was adopted. The total population was 60 members of management staff in commercial banks branches that operate in Meru town and the study adopted a census sample design. Data was collected using a questionnaire. Descriptive and inferential analysis were used to analyze data. From the study findings it can be concluded that financial performance of commercial banks` branches in Meru towns is positively influenced by innovation. Innovations adoption by commercial banks presents a high potential of financial performance improvement therefore yielding increased returns for the shareholders. Innovations versatility has resulted to their increased adoption rate among the banks and their customers with the uptake further accelerated by the fact that the adoption is from both the banks and their customers. Even with other sectors of Kenyan economy showing a lagged performance, Kenyan banks have continued to post good performance. The recommendations of the study were that banks can manage their costs better in continuing to invest in technology innovation as opposed to continued investment in brick and motor branches. The internet and mobile channels can process a higher volume of transactions compared to the use of the conventional manual processes.