| dc.description.abstract | The banking industry locally and internationally has continued to embrace adoption
and implementation of online banking products and services given the discussed
benefits that arise, such as lowering operations cost quick and convenient delivery of
services to customers and value addition to the banks services this in turn has
increased the number of customers and transactions hence higher profits. The role of
online banking on efficiency and cost reductions in the banking sector is paramount to
the successful and profitable service delivery in the sector. Online banking plays a
significant role in improving the efficiency of the banking sector as well as reducing
the costs of banking transactions for customers. The banking sector has, for the past
decade, witnessed various improvements and new technologies with the main purpose
of improving the service delivery of the banking sector. The research objective was to
determine the effect of online banking in cost efficiency in commercial banks in
Kenya. A quantitative research method was followed and the data was analyzed using
chi-square tests.
Empirical analysis has been conducted on a panel data of 7 Kenyan banks and
specifically the one using online banking for the period 2008-2012. Accounting data
were used to measure the banks' performance and regressed on relevant variables
using multiple regressions. The data was then checked for completeness and errors,
coded and data entered in SPSS for analysis whereby by quantitative analysis was
used and content analysis used on qualitative data. The data was then presented in
form of tables, graphs, charts and in prose form for qualitative data. The results show
that online banking has a significant positive impact on banks' performance. Online
banking has improved the performance of these banks. As a result of adopting online
banking, costs associated with adopting online banking are lower than revenues from
provision online services. Hence, banks should focus its work to promote the
confidence of online banking services and encourage the customers to use this kind of
services and make it more secure to avoid unnecessary costs. | en_US |
