Abstract
Purpose: The purpose of this study was to establish the effect of Internet Banking on the financial performance of listed commercial banks in Kenya.Methodology: This study used descriptive survey design. The target population was all employees of listed commercial banks in Kenya. Simple random sampling method was used to identify the study respondents. Primary sources of information were used and were gathered using questionnaires. Finally data from the questionnaires was sorted, coded and input into a software for analysis. Data was analysed using statistical package for the social sciences (SPSS) to generate diagrams, frequencies, descriptive statistics and inferential statistics.Results: The key finding of the study revealed that internet backing has positive influence on bank incomes, operating costs, loan book and customer deposits.Unique contribution to theory, practice and policy: Due to the growing demand for the internet as a key service delivery, it is recommended to bank management to ensure that there is tight security of data and information being operated on the internet bank platform. The study also recommends that the bank managers should emphasize on training their clients on use of internet banking via advertisements as this will make ease on communication. Commercial banks need to emphasize the use of internet banking as this will enhance banks growth and customers saving on much time which they could have wasted on queues to be attended the traditional way.
Highlights
1.1 Background of the Study Internet Banking (IB) or e-banking refers to systems that enable bank customers to get access to their accounts and general information on bank products and services through the use of bank’s website, without the intervention or inconvenience of sending letters, faxes, original signatures www.ajpojournals.org and telephone confirmations (Panida & Sunsern, 2012)
The study concluded that the influence of internet banking on income has been occasioned by the ease that internet has offer to both retail and corporate customers and making it easy, convenient and faster to make transactions
The study concluded that internet banking is capable of growing the loan book of banks and even monitor how the loan accounts are behaving and be able to send electronic reminders and advice to customers
Summary
1.1 Background of the Study Internet Banking (IB) or e-banking refers to systems that enable bank customers to get access to their accounts and general information on bank products and services through the use of bank’s website, without the intervention or inconvenience of sending letters, faxes, original signatures www.ajpojournals.org and telephone confirmations (Panida & Sunsern, 2012). It is the types of services through which bank customers can request information and carry out most retail banking services such as balance reporting, inter-account transfers and bill-payment via telecommunication network without leaving their home/organization (Thulani, Tofara & Langton, 2009). Internet Banking forms a significant element of the bank in terms of cost, customer service, and profit (Manoranjan, Bhusan, Kanta & Suryakanta, 2012)
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