dc.description.abstract | The main objective of this study was to establish the effect of internet banking on
economic development and establish the status of internet banking in commercial
banks in Kenya. Specifically, it examined the investment in ICT, the number of
clients using internet baking, the return on assets and the adoption of automated teller
machines over the period 2009 – 2013. Economic development was measured by
gross domestic product.
The study adopted causal research design and descriptive design where inferential
statistics were used in analyzing the data. The primary data was collected by
questionaries’ from 15 banks. Secondary data was collected using documentary
information from CBK and KNBS. The data was analyzed using linear regression
model.
The study found that, the fifteen commercial banks have all adopted internet banking
and customers access some services online due to enhanced efficiency. The results
showed that, there exists a positive relationship between economic development and
the number of customers using internet banking, the number of ATMs and return on
assets. However, there is a negative relationship between economic development and
investment in ICT by the commercial banks. | en_US |