| dc.description.abstract | There began to appear theoretical arguments regarding the role of information technology (IT) in
creating the value chain at firms and this opened up new lines of inquiry (Porter and Millar,
1985). This study was a survey on the business value of information communication technologies
in the financial departments of commercial banks in Kenya. The collected data has been analyzed
interpreted in line with the aim of the study namely: to delineate the extent to which various
facets of information communications technology (ICT) are used by the commercial banks in
Kenya; and secondly, to investigate the economic benefits of the information communications
technology and innovations used by commercial banks in Kenya at their finance departments.
Data was collected from a population that comprised of forty-four commercial banks incorporated
and, or licensed to operate in Kenya by 2007. This gave a response rate of seventy one (70.8%)
percent.
Based on the results from data analysis and findings of the research, based on the objective of the
study; firstly, it was found that the three key functions that are performed by finance departments
of commercial banks are to perform or give short-term banking forecasts, at least monthly; to
exercise day-to-day control of banking positions and lastly to cover the interest-rate risk.
Secondly, it was found that the two commonly used technological tools in cash management in
the finance department are the financial software and e-banking. Thirdly, the five key economic
benefits of the information communications technology and innovations that have accrued to the
commercial banks in Kenya at their finance departments include: ICT use has ensured proper
management of account balances at value dates; ICT has helped in the monitoring and
optimization of the sales-cash circuit; ICT has led to system responsiveness to changing user
needs; and ICT has helped in the coverage of exchange-rate risk. Only eight (8) components/
factors were extracted in factor analysis on the economic benefits of the information
communications technology and innovations used by commercial banks in Kenya at the finance
departments.
Some eight economic benefits that have not been realized by the financial department need to be
addressed within the commercial banks in Kenya, especially flexibility to produce professional
reports like graphics and desktop publishing. Areas of further research that were identified
include a similar study to be carried out to determine how the relationship between ICT planning
intensity and financial performance, and benefits if any be quantified by the organizations. The
greatest hurdles while conducting the study were time, literature availability and irrelevancy. | en |
