Effect Of E-banking On Financial Performance Of Listed Commercial Banks In Kenya

Abstract

The objective of this study was to examine the effect of electronic banking on financial performance of listed commercial banks in Kenya. This study was guided by four objectives, establishing the effect of mobile banking, agency banking, ATM banking and online banking on financial performance of listed commercial banks in Kenya. The study employed quantitative research design using panel data analysis. The targeted population of the study was the 11 listed commercial banks in Kenya. Secondary data was extracted from CBK banking supervisory reports and published annual reports of banks. The data was recorded on data collection sheets. Both descriptive and inferential statistics were used. The findings were presented using tables with associated explanations. The study found that there was strong positive relationship between mobile banking, agency banking, ATM banking and online banking and financial performance of listed commercial banks in Kenya. Financial performance of commercial banks and m-banking were strongly and positively correlated. There was a strong positive correlation between financials performance of individual commercial bank and agency banking. There was a strong positive correlation between financials performance of individual commercial bank and agency banking. There was a weak positive correlation between financial performance of individual commercial bank and online banking.