INFLUENCE OF ELECTRONIC BANKING ON PERFORMANCE OF COMMERCIAL BANKS IN KAKAMEGA COUNTY
Abstract
The objectives of this study were to assess the influence of mobile banking services on performance of commercial banks in Kakamega County; ascertain the influence of online banking on performance of commercial banks in Kakamega County; assess the influence of electronic card banking on performance of commercial banks in Kakamega County and to establish the influence of telephone banking on performance of commercial banks in Kakamega County. The research design adopted was explanatory design which predicted the likelihood of a phenomena occurring given the presence of an event. The sampling technique used was stratified purposive random sampling. Data was collected from primary sources. Primary data was collected using questionnaires. The instruments were administered by the researcher on the selected respondents. Data was edited, coded and then analyzed using SPSS version 20. The findings indicated that electronic banking constructs (Mobile banking R=0.616, P=0.000, internet banking R=0.528, p=0.000, electronic card banking R=0.530, p=0.000 and telephone banking R=0.638, P=0.000) had significant influence on the performance of commercial banks in Kakamega County. Electronic banking significant accounted for 58.2% variation in the performance of commercial banks. The study recommended that commercial bank management need to decrease electronic banking bill payment services in commercial bank so as to enable customers to undertake transaction through electronic banking. The banks should also enhance electronic banking customer security and privacy to reduce fraud and cyber-crime associated with electronic banking.
Key Words: Mobile Banking, Online Banking, Electronic Card Banking, Telephone Banking
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.946
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