Effect of Internet Banking on Financial Performance of Tier One Commercial Banks in Kenya

摘要

Financial performance of commercial banks dwells entirely on generated returns of assets from operations; loan portfolio falls as a critically valuable asset that unfortunately exposes the institution to financial risks. Commercial banks across the world have always embraced business process reengineering as a strategy to change on their business processes and procedures hence improve on their financial performance. Commercial banks in Kenya are faced by intense competition from money transfer platforms such as Mpesa. This study therefore sought to examine the effect of internet banking on financial performance of tier one Commercial banks in Kenya. The study adopted descriptive research design. The target population for this study was staff in Tier one Banks, with a keen aim on the business development managers within their headquarters in Nairobi. Census technique was used to incorporate the entire target population. The study used primary data. Data was collected by use of both structured and semi-structured questionnaires. The quantitative data was analyzed using the descriptive and inferential statistics using SPSS Version 24 software. The study indicated that there is a positive significant relationship between internet banking and financial performance of tier one Commercial banks with a regression coefficient of 0.24. From the study the researcher recommended banks should enroll more service through internet banking this will encourage more customers to adopt internet banking .Commercial banks also need to emphasize the use of internet banking as this will enhance banks growth and customers saving on much time which they could have wasted on queues to be attended the traditional way.