Electronic Banking and Competitive Advantage in Commercial Banks in Kenya

Abstract

Electronic Banking is a broad description for the method and technique in which a consumer executes banking activities electronically. It refers to the application of programmed resources to convey banking services and products. This research study targeted at establishing and determining the relationship and correlation between electronic banking and competitive advantage in commercial banks in Kenya. The objective of the research study was to institute if electronic banking has steered to competitive advantage in the Kenyan commercial banks with the actual specific and deliverable of the study being to establish and determine the relationship between electronic banking and competitive advantage. The study explored and reviewed the information from other researchers and authors related to the concept of electronic banking and competitive advantage with an aim of determining and establishing the correlation and relationship between application of electronic banking and competitive advantage. This study used the cross-sectional survey research design. The research study focused on the licensed and operating commercial banks in Kenya offering and providing banking services and products to their customers. The population of this study was all the forty-two commercial banks currently licensed and operating in Kenya. Data collection was performed by the use of articulated questionnaires disseminated and circulated to designated bank leaders. The research study established and instituted that there is an extensive variety of electronic banking products offered by commercial banks in Kenya. The study also established that in an attempt to remain relevant and competitive in the market and also in order to tap on the benefits of this competitive advantage, majority of the commercial banks in Kenya are currently offering a variety of electronic banking services. From the research study, it can be comprehended that in order for commercial banks in Kenya to remain relevant in the market, it is imperative for them to adopt, implement and warrant that they offer unique and variety of electronic banking services. The study recommended that commercial banks in Kenya should instrument a continuous improvement strategy on the services and products offered in order to triumph and retain customers.