Effect of Electronic Banking on the Financial Performance of Commercial Banks in Kenya
View/ Open
Date
2021Author
Barasa, Charles, L
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The study intended to investigate the link between electronic banking and the financial
performance of commercial banks. The data came from annual reports from the 41 commercial
banks that were accessible. This was obtained from the Central Bank's websites and the individual
Bank's websites as published there. The study collected data on the number of transactions done
through ATMs to represent ATM banking. E-banking was measured by the numbers of
transactions through online platforms and the value of transactions through online banking
platforms. The research also used mobile banking measures such as the number of transactions
through mobile banking. Return on Assets, on the other hand, was used to measure financial
performance (ROA). According to correlation research, ATM banking, mobile banking, and
internet banking all show a favorable link with commercial bank financial success in Kenya.
However, the regression results demonstrated that ATM and online banking have a positive and
significant impact on commercial banks' financial performance. The results, Mobile banking, on
the other hand, has been determined to have a negative and considerable influence on Kenyan
commercial banks' financial performance. Based on the findings, the research recommends that
banks boost their use of electronic banking, notably ATM banking and internet banking. The
research also advises Kenya's central bank, as the country's primary regulator and supervisor of
commercial banks, to develop effective policies governing the use of electronic banking by
Kenya's commercial banks.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
The following license files are associated with this item: