| dc.description.abstract | Internet banking is used as a marketing tool to attract and retain customers, expand market reach, and improve service quality, the extent and the intensity of banking products and services offered online is likely to have a significant impact on the bank's overall performance. Online banking still remains a fictitious idea to most people. With frequent cases of frauds seen within our country where cases of fraud have been reported in the basic electronic banking system like ATM cards most people would prefer taking money in cash than adopt technology. The purpose of the study was to investigate the impact of online banking on financial performance of commercial banks in Kenya. This study was conducted through the use of a descriptive design. The population comprised all the 43 commercial banks in Kenya and therefore a census survey was carried out. The primary data was collected through questionnaires while secondary data was collected from the annual reports issued by CBK. Data was analysed using multiple regression. The study concludes that generally, online banking has a weak positive and significant influence on the financial performance of commercial banks in Kenya. This is because online bank cut banks costs, increase commission income, reduce staffing levels and make banking more convenient for customers. The study recommends the banks’ should encourage more customers to use internet banking since based on the results of the study, internet banking services were very effective in addressing lowering costs to the bank and customers, safety and accessibility by users. The banks need to address security concerns for the increasing online banking fraud cases. The study also recommends that review of Fraud Legislation could reduce fraud related risks in the banks. Kenya still lags behind on anti fraud laws. it is imperative for bank management to intensify investment in ICT products to facilitate speed, convenience, and accurate services, or otherwise lose out to their competitors. | en |
