Effects of information communication technology on financial performance of Commercial Banks in Kenya
This research project had the purpose of finding the effect of information communication technology on financial performance of commercial banks in Kenya. Information and communication technology is important to the banking industry in Kenya. The banking sector is vital for the growth of economy of a nation. Qualitative research design was employed in this study. The population of study was the 43 registered commercial banks in Kenya. Data collection sheet was used as the instrument of data collection. The information was gathered from the audited financial report which were readily available at the Central Bank of Kenya. SPPS and excel were used to analyze the data collected. The research discovered that information communication technology has improved the financial performance of commercial banks in Kenya. As a results the market share has been increased plus it has assisted the commercial banks to remain competitive. Information communication technology also assists to improve the liquidity of commercial which lowers dependability of depositors therefor improving on earnings and return. This helps improve of efficiency and profitability of the commercial banks especially in the emerging banks. The study discovered there is need to invest more on information communication so as to increase the commercial banks financial performance. The fast pace growth and development of information communication technology in the Kenya banking sector has resulted into improvement in efficiency in operation and also in service delivery. Commercial banks have become competitive by enhancing staff training and growth as well as research and development in technology. Thus the study concludes that among the ICT employed by commercial banks, mobile banking had the most positive influence on the financial performance.Based on the study findings, the study recommend that commercial banks should reduce investment in ATMs and internet banking as this was found to have negative influence on financial performance. In this case therefore the researcher recommends that commercial banks should keep investing and also using the mobile banking in their daily operations. This is due to the fact that the people who owns mobile phones are increasing day by day.
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