INTERNET BANKING AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KAKAMEGA COUNTY; KENYA
Abstract
Globally, financial innovation has taken tremendous steps for Kenyan commercial banks in the last decade; hence, internet banking as an innovation practice for financial institutions has been very relevant. This has been attributed by the complex growing demands from customers on daily basis, stiff competition from competitors and more importantly financial institutions have the obligation of meeting their targets in the market and also keep at par with competitors and even above them. Despite the existence of various research studies and numerous literatures on financial innovation, most commercial banks still don’t have access to the needed information on the aspect of internet banking so as to keep at par with trending needs of customers; therefore this adversely affects their financial performance in both the short and long run. The objective of this study was to determine the effect of Internet Banking on financial performance of commercial banks in Kenya. Specifically, the study concentrated in Kakamega County; Kenya. The study applied the descriptive Survey research design and the target population of the study was from the members of the commercial banks in Kakamega County. The study applied census technique on the study target population since it was manageable. The data collection instrument included structured questionnaires. Computer software of Statistical Package for Social Sciences (SPSS 24) was employed to generate and analyze data in order to respond to descriptive statistics; frequency, mean and standard deviation. The software was as well used on Inferential Statistics that led to generation of statistics of correlation among the variables. Regression analysis was done and results were based on complying with the objective of the study. The Conclusions was that Internet Banking had an influence on performance of commercial banks. The recommendation of the study was that the Commercial Banks should embrace Internet Banking Practices since it improves Financial Performance of the commercial banks.
Key words: Internet Banking, Financial Innovation, Financial Performance
CITATION: Owino, M., & Miroga, J. (2023). Internet banking and financial performance of commercial banks in Kakamega County; Kenya. The Strategic Journal of Business & Change Management, 10 (1), 149 – 161.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i1.2531
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