The Effect of Adoption of Mobile Banking Systems on Operational Efficiency of Commercial Banks in Kenya

Abstract

The purpose of the study was to determine the effect of mobile banking on operational efficiency of commercial banks in Kenya. The study was a census survey of the 43commercial banks in Kenya. The study used secondary from CBK annual banking survey report for 2015 to collected data on the number of registered mobile banking users, amounts of money moved through mobile banking, revenues of the banks and operational expenditure for the period 2011 to 2014. Data analysis was established the correlation between growth in mobile usage and growth in banking efficiency. From the regression model the study found out that mobile banking positively enhances operational efficiency of commercial banks in Kenya .The study therefore concludes that mobile banking positively and significantly affects the operational efficiency of commercial banks in Kenya. The study recommended policy makers to continually consider adopting mobile banking technology.