Influence of Monitoring and Evaluation Strategies on Internet Banking Performance: a Case of Investment & Mortgages Bank, Kenyatta Avenue, Nairobi, Kenya

Abstract

Organization‟s total risk profile, the risk levels and risk appetite related to customary banking, specifically operational, reputational, legal, and strategic risks have been escalated by Internet banking distinctive characteristics. It is generally hard to conclude if the desired outcomes are being attained and what remedial measures to take to ensure accurate delivery of planned results in case of lack of effective monitoring and evaluation strategies, and whether initiatives are making positive contributions. Thus, this study examined the influence of monitoring and evaluation strategies on internet banking performance with reference to benchmarking, monitoring and evaluation planning, budgeting and piloting. The finding of this study would be of significance to bank managers, as it would increase emphasis on the role of monitoring and evaluation of internet banking projects implementation. This study used an exploratory and descriptive survey research design and was carried out at I&M Bank Limited. This study undertook a census of the 59 employees of I&M Bank Ltd-Kenyatta Avenue Branch. Data for \ was obtained using interview schedules and questionnaires, which were dropped to the sampled respondents and picked after 2 days. A pilot test was executed using 10% of the population and the dependability of the questionnaire; the study used the Cronbach alpha (α) coefficient. The data obtained was analyzed using descriptive statistics and the Pearson product moment correlation and then presented using tables. The study provided answers to the research questions. The study found out that competitive benchmarking helped improve firms‟ products, services or work processes to enhance its competitive strategy and performance. The study found out that monitoring and evaluation planning ought to be a vital element of any planned ICT program and also ought to be taken into account during the planning stage, before a project begins. The study also found out that budgeting assisted in decision-making and facilitated the more efficient allocation of resources for project implementation and performance. The correlation results established a positive and significant relationship between internet banking performance and monitoring and evaluation planning, budgeting and piloting. The study concludes that there is a noteworthy relationship between monitoring and evaluation planning and internet banking performance. There is also substantial positive association between budgeting and internet banking performance. The study also concludes that there is a significantly positive relationship between piloting and internet banking performance. The study recommends that banks should also evaluate the best practices benchmarked from other firms to help gain strategic, operational advantage in the implementation of internet banking. Commercial banks should also formulate policies that engages monitoring and evaluation planning as a fundamental component of any planned ICT program. Effective monitoring and evaluation strategies ensure coherence and continuity of a project from design to it implementation thus enhancing a reliable internet banking program. The study, therefore, recommends that the banks‟ ICT department ought to do adequate piloting before fully engaging in internet banking programs so as to ensure successful execution of internet banking