Effect of on-line Banking adoption on Performance of Commercial Banks of Kenya in Eldoret Town

Abstract

<p><em>The study sought to ascertain the effect of online banking adoption on the performance of commercial banks in Kenya in Eldoret Town, Kenya. Both primary and secondary data were used in the analysis. Secondary data was derived from annual audited financial reports of these banks and through document analysis. Primary data, on the other hand, was collected through questionnaire administration. The target population of the study was 364 employees drawn from 25 banks within Eldoret town . Stratified and simple random sampling was used to select a sample of 224 respondents that participated in the study. The explanatory research design was adopted in this study. The findings of the study indicated that internet banking had a significant positive effect on bank performance. The study concludes that internet banking and the adoption of ATM (Automated Teller Machines) by banks in Eldoret town were key contributors to their high performance. The study, therefore, recommends that if commercial banks in Eldoret are to sustain this improved performance it is critical that they should focus on technological enhancements that  are secure, flexible, reliable and convenient to their clientele on the same note; commercial banks should embrace mobile bank options that will provide customers with information on available products and charges to enable the client make a choice.</em></p>