The relationship between information communication technology usage on efficiency among commercial Banks in Kenya

Abstract

This project examines the relationship between Information Communication Technology usage has on efficiency in the banking industry in Kenya. The new electronic age has transformed the marketing of banking services. The modern customer demands new and differentiated financial products and services. This way, banks must continuously search for new strategies to develop and market their products and services. The banking industry has gone through many changes as a result of the introduction of ICT. The aim of this project is to evaluate the various factors that ICT usage has brought in place to meet productivity, customer satisfaction and service delivery in the banking industry. This include the effects of service delivery on the usage of ICT, the effect of products and services differentiation on ICT, the effect of customer needs and wants on ICT, the effects of on costs on usage of ICT, the effects of competition on usage of ICT. The focus of the report has mainly been in theLicensed Commercial banks in Kenya and. Data was obtained from both the operations managers at the banks. The data was analyzed using simple descriptive research methodology with the help of illustrations through table of figures to objectively determine the relationship between Information Communication Technology usage on Efficiency in banking industry in Kenya. The study focused on licensed commercial banks in Kenya. The case study research design was adopted for this research work; to study 43 licensed commercial banks according to the Central bank of Kenya (2012). The questionnaire was used as instrument to collect data for the study. The questionnaire was administered on the sampled population, which were dully completed and returned to the researcher. The data collected were analyzed and interpreted. Relevant findings were made fro m the study on the efficiency and application of ICT in banking sector. The finding shows that ICT adoption in banks has led to improvement of operational efficiency and reduced information costs.