dc.description.abstract | This study aimed at establishing the relationship between online banking services and the
competitive advantage of commercial banks in Kenya. The purpose of the study was to
establish how the online services has led to competitive advantage in the Kenyan banking
industry with the specific of the study being to determine the extent of online banking
adoption in commercial banks in Kenya; establish the challenges of online banking in
commercial banks in Kenya; and determine the relationship between online banking and
competitive advantage of a bank. The study focused on the 43 commercial banks in Kenya.
Data was collected through the use of questionnaires distributed to selected bank managers.
The study found that there are currently a wide range of online banking services offered by
commercial banks in Kenya. The study also found that majority of the banks in Kenya are
currently offering this online banking services to ensure that they remain competitive and
relevant in the market and also to share in the benefits of this competitive advantage.
However, there are several challenges that the banks are facing in their endeavour to offer
online banking to the customers. These challenges need to be mitigated in order for the banks
to enjoy the full benefits of investing in internet banking. From the study, it can be
concluded that in order for banks to remain relevant in the market, they have to ensure that
they offer a variety of online banking services ranging from balance inquiry to customer care services. The study recommended that banks adopt and implement a continuous improvement strategy to win customers. They also come up with products and services which are highly unique. Policy makers should put into consideration online banking awareness creation when drafting policies on the operations of banks in Kenya in order to overcome the challenges faced. | en_US |