The Impact of Internet Banking on Financial Performance of Commercial Banks in Kenya
Abstract
The purpose of this study is to examine the effect of internet banking on the
financial performance of commercial banks in Kenya. The study attempts to
present status of internet banking in Kenya and it's implications for the Kenyan
banking industry. The internet has become the world's most expensive public
communication system that rivals the global telephone system in reach and range.
Customers' expectations in terms of service delivery have increased in terms of
service delivery and other key factors.
The widespread availability of internet banking is expected to affect the mixture of
financial services and financial performance. Internet banking has changed the
dimensions of competition of in the retail banking sector. This study estimates
internet banking intensity and bank performance indices using secondary data. The
measure of financial performance used in this research is Return on assets and
the independent variables are natural Log of assets, Ratio of loans to total assets
and internet banking .Results indicate that the increasing of internet as an
additional channel of marketing banking services has significantly improved the
financial performance of commercial banks in Kenya. Internet banking has also significantly
improved banking efficiency in rendering services to customers.
Citation
Degree Of Master Of Business Administration (MBA),Publisher
University of Nairobi,