Determinants of electronic banking and operational performance of commercial banks in Kenya
E-banking is regarded as the process by which customer carry out banking transactions electronically without going to a brick-and-mortar institution. With the great reception of the internet as a delivery channel for banking products and services, it has provided new business opportunities for banks as well as for customers. Electronic payment systems have become essential part in the online business process innovation, as companies look for ways to improve service delivery. This study sought to establish the operational determinants of e-banking on performance of commercial banks in Kenya. The study was guided by two objectives; to establish operational determinants of e-banking and to determine the effects of operational determinants of e-banking on performance of commercial banks in Kenya. The target population of the study consisted of all 43 operating commercial banks in Kenya, registered with the CBK where both primary and secondary data was used. The findings from this study presented significant progress towards understanding the determinants of E- banking and its perceived effect on performance of commercial banks in Kenya. The findings agree that increasing implementation of e-banking results in the increased performance and the adoption of ebanking by the banks has positively impacted on the operating efficiency of commercial banks in Kenya. The study conclude that adoption of e-banking has enhanced Kenyan banking industry by making it more productive and effective; E-banking also has a strong positive relationship on the overall banking performance by making workers performance more effective and efficiency. There is need for commercial banks to heavily invest in technology as this will highly encourage the adoption of e-banking technologies and this will influence the financial performance of commercial banks. Commercial banks should therefore continue to adopt new technologies which will improve their margins and hence their profitability in order to attract more investors. There is need for a study to be conducted to determine the relationship between e-banking and financial performance of commercial banks in Kenya.