E-commerce Strategy and Performance of Commercial Banks in Kenya

Abstract

This study was aimed at establishing the relationship between e-commerce strategy and performance of commercial banks in Kenya. The study also sought to establish the factors influencing the adoption of e-commerce strategy in commercial banks in Kenya. The results of the research have been conducted and interpreted with a view of developing a better understanding of the relationship of ecommerce strategy on performance of commercial banks in Kenya. The study adopted a cross sectional design, and targeted commercial banks in Kenya under the umbrella of Kenya Institute of Bankers Association (KIB). Data analysis was through percentage frequency, mean, standard deviation, and correlation analysis. The results indicated that there was a strong relationship between the e-commerce strategy and performance of commercial banks in Kenya. The banks that have adopted e-commerce strategy were more efficient and more relevant to meeting the needs of the modern customers. The findings also indicated that the main factors which influenced the adoption of the e-commerce strategy in banks to a larger extent are customer support service and the payment systems.