The impact of ICT adoption on financial performance of Commercial banks in Kenya
The purpose of the study was to establish the Impact of ICT adoption on financial performance of commercial banks in Kenya. Information and communication technology (ICT) has become the heart of the banking sector, while banking industry is the heart of every robust economy. The research design used was Correlation. The population of study was the commercial banks in Kenya. The data collection instrument used was questionnaire which was administered by the researcher through drop and pick method. Responses were grouped into various categories for analysis using descriptive statistics. Statistical Package for Social Sciences (SPSS version 17) was used to analyze the structured questions while the use of descriptive statistics determined frequencies and percentages. The results were presented in prose, tables, bar graphs and charts. The study found out that ICT improved the operations, improved the liquidity and the asset quality in commercial banks in Kenya. This not only increased their markets but also helped the organizations to remain competitive in the market. ICT also deepen liquidity of banks in existing markets, for example by reducing excessive reliance on a narrow base of depositors for funding and improves on earnings, asset quality and this increased efficiency in the operations as a whole and especially in commercial banks in emerging markets and developing countries such as Kenya. The research indicates that there is need to adopt ICT innovations in order to improve the commercial banks‟ financial performance. In technological innovations, the banks should introduce ICT products that are relatively simple and standard and that offer clear value added. The rapid proliferation and diffusion of ICT in the Banking Industry in Kenya provides a platform to use modern technologies to develop operational efficiency and quality of service to attain and retain customers and in the process enhance the financial performance of the commercial banks.