Service Delivery Channels and Operations Performance of Commercial Banks in Kenya

Abstract

The objectives of this study were to determine the extent of usage of service delivery channels used by commercial banks in Kenya, and to determine the effect of service delivery channels on operational performance of commercial banks in Kenya. This study used a causal research design because it enabled the study to test the cause and effect relationship between two or more variable. Secondary data was also used in the study. Secondary data was extracted from the financial and operational data for the banks released in their annual reports and annual supervision reports released by the Central Bank of Kenya. The study used correlation and regression statistics to analyse the data. The study concludes that ATMs increase accessibility of the bank services to the customers and that use of ATMs helps the bank attain efficiency in delivering services. This study concludes that mobile banking leads to reduction in operational costs. This study also concludes that M-banking provides increase convenience, expand access and significantly save time for the customers. This study also concludes that branch networking enhances geographical market increasing the organizations size and influences new customers. It was also concluded that internet banking offers more convenience and flexibility to customers coupled with a virtually absolute control over their banking and it eliminates the barriers of distance/time and provides continual productivity for the bank to unimaginable distant customers.