E-business and Operating Efficiency of Commercial Banks in Kenya

Abstract

This research sought to determine the impact of e-business on operating efficiency of commercial banks in Kenya and the challenges faced while implementing e-business. Data was collected using questionnaires and analyzed using descriptive statistics. From the analysis, it was found that there are several positive impacts of e-business on the operating efficiency of commercial banks. For instance, there has been significant improvement in quality of service offered to customers and improved staff productivity. There also exist several challenges that hinder the implementation of e-business in commercial banks. These challenges include lack of infrastructure, threat from computer viruses and poor commitment from senior management among others. The commercial banks have thus come up with strategic responses to counter these challenges. Some of the popular responses being used by banks include lowering electronic banking charges and employing well trained staff on e-business applications in banking. The study concludes that commercial banks in Kenya need to invest more in e-business so as to enhance efficiency in their operation