The Relationship between Electronic Banking and Financial Performance among Commercial Banks in Kenya
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Date
2012Author
Aduda, Josiah
Kingoo, Nancy
Type
ArticleLanguage
enMetadata
Show full item recordAbstract
Banking industry has been in a process of significant transformation. The force
behind this transformation of the banking industry is innovation in information
technologies. Information and communication technology is at the centre of this
global change curve of electronic banking system in Kenya today. It is against this
background, this study investigated the relationship between e-banking and
performance of Kenya banking system. Specifically, the study established whether
there is relationship between the dependent variable i.e., performance measured by
return on assets and the independent variables: investments in e-banking, number
of ATMS and number of debits cards issued to customers as proxy for e-banking.
The study used secondary data. The data was collected from annual report of
target banks and Central Bank of Kenya. The study used both descriptive and
inferential statistics in analyzing the data. In general the study revealed that
e-banking has strong and significance marginal effects on returns on asset in the
Kenyan banking industry. Thus, there exists positive relationship between
e-banking and bank performance. In general conclusion the electronic banking
has made banking transaction to be easier by bringing services closer to its
customers hence improving banking industry performance.
Citation
Journal of Finance and Investment Analysis, vol.1, no.3, 2012, 99-118Publisher
Department of Finance and Accounting, University of Nairobi, Nairobi, Kenya.