Impact of E-banking Strategy on Performance in the Kenyan Banking Industry

Abstract

Innovations in information and communication technology have changed the operations of many organizations. In recent years, the adoption of E-banking strategies began to occur quite extensively as a channel of distribution for financial services due to rapid advances in information and communication technology and intensive competitive banking markets. It has become necessary for banks to use of technology to respond to their continuously changing requirements. This study is designed to evaluate e-banking strategies adopted by commercial banks in Kenya and their impact on their profitability. It has been shown, from the results of the study that adoption of e-banking strategies had a positive impact on banks’ profits. E-banking strategies bring in returns and banks should put more emphasis on innovations in information and communication technology which help in achieving cost effective channels of offering banking products and services. Banks should endeavour to implement technologically driven banking strategies that are expected to re-engineer the processes of providing banking services in Kenya.