dc.description.abstract | It is expected the adoption of electronic banking services will have a positive effect on the
profitability of commercial banks.The objective of this research was to measure and compare
the effect of e-banking technologies on the profitability of domestic banks, how much the
provision of these services affect the service quality of the banks and hence their efficiency,
to assess the impact of changing from the traditional banking to the electronic banking on the
banks. This study targeted 44 commercial banks in Kenya where secondary data was
used.Data from financial statements between year 2009 and 2013 was used for analysis.The
study used correlation and regression statistics to analyse with the help of SPSS.The
dependent variable (ROA) was correlated with independent variables (overhead ratio,market
share,deposit asset ratio,loan asset ratio,effective lending rate and e-bank commission to
income ratio) to determine if a relationship existed between variables.Regression statistics
was used to determine the significance of the relationship between variables.This study
investigated the returns on assets of commercial banks following the adoption of electronic
banking in Kenya. Kenya is a developing economy pressing forward in the use of electronic
banking for its banking activities. This study has provided evidence that electronic banking
has advanced returns on the assets of Kenya commercial banks though not significantly based
on the hypotheses tested.This study therefore recommends that the banking industry should
adjust to total and effective deployment of information technology due to its sophistication
since the technology is irreversible with relative perceived advantage. That Kenyan banks
should be able to accept the level of risk that they can cope with in electronic banking system,
measurable to the bank’s overall strategic and business plans. | en_US |