E-Banking Strategy and Performance of Commercial Banks in Kenya

Rosemary Wangari Nduta, Jane Wanjira
{"title":"E-Banking Strategy and Performance of Commercial Banks in Kenya","authors":"Rosemary Wangari Nduta, Jane Wanjira","doi":"10.35942/ijcab.v3iv.68","DOIUrl":null,"url":null,"abstract":"Technological innovations in the aspect of electronic banking (e-banking) have progressively advanced and changed the manner in which banks offer services. The use of varied forms of technological innovations has become a key strategy that influences the competitiveness and performance of commercial banks. Subsequently, banks are investing more in adopting and implementing innovative e-banking strategies. Although numerous studies have inspected the effect of e-banking on banks across the world, the knowledge gap is that few studies have examined the impact of e-banking strategies on commercial banks’ performance in Kenya. The objectives of this study were to predict the impact of agency banking, mobile banking, the use of ATMs, and internet banking on the commercial banks’ financial performance in Kenya. Agency theory, contingency theory, diffusion of innovations theory, and technology acceptance theory formed the theoretical basis of this study. In its research design, the study used the descriptive approach. The target population comprised managers of 40 commercial banks and the study utilized the purposive sampling method to select 100 respondents comprising of 40 senior managers and 60 operations managers. Descriptive statistics, correlation, and regression analysis were used to analyze data. Correlation analysis indicated that mobile banking (r = 806, p = 0.000), agency banking (r = 0.737, p = 0.000), internet banking (r = 0.466, p = 0.000), and ATM banking (r = 0.547, p = 0.000) have statistically significant relationships with the commercial banks’ performance. Findings indicate that e-banking accounts for 71% (R2 = 0.710) of the variation in the commercial banks’ performance. Moreover, the study found out that e-banking strategies of agency banking and mobile banking are statistically significant predictors (p<0.01, while internet banking and ATM banking are statistically insignificant predictors (p>0.01). Based on these findings, the study concludes that rely on e-banking strategies in enhancing their performance, particularly mobile banking and agency banking. Furthermore, the study concludes that ATM banking and internet banking contribute minimally to the commercial banks’ performance in Kenya. Thus, the study recommends banks to optimize mobile banking and agency banking because they are statistically significant predictors while increasing awareness of internet banking and addressing insecurity issues of ATM banking. Thus, further research should consider establishing factors that account for the unexplained variances of 29% in the performance of commercial banks.","PeriodicalId":119984,"journal":{"name":"International Journal of Current Aspects","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2019-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Current Aspects","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.35942/ijcab.v3iv.68","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0

Abstract

Technological innovations in the aspect of electronic banking (e-banking) have progressively advanced and changed the manner in which banks offer services. The use of varied forms of technological innovations has become a key strategy that influences the competitiveness and performance of commercial banks. Subsequently, banks are investing more in adopting and implementing innovative e-banking strategies. Although numerous studies have inspected the effect of e-banking on banks across the world, the knowledge gap is that few studies have examined the impact of e-banking strategies on commercial banks’ performance in Kenya. The objectives of this study were to predict the impact of agency banking, mobile banking, the use of ATMs, and internet banking on the commercial banks’ financial performance in Kenya. Agency theory, contingency theory, diffusion of innovations theory, and technology acceptance theory formed the theoretical basis of this study. In its research design, the study used the descriptive approach. The target population comprised managers of 40 commercial banks and the study utilized the purposive sampling method to select 100 respondents comprising of 40 senior managers and 60 operations managers. Descriptive statistics, correlation, and regression analysis were used to analyze data. Correlation analysis indicated that mobile banking (r = 806, p = 0.000), agency banking (r = 0.737, p = 0.000), internet banking (r = 0.466, p = 0.000), and ATM banking (r = 0.547, p = 0.000) have statistically significant relationships with the commercial banks’ performance. Findings indicate that e-banking accounts for 71% (R2 = 0.710) of the variation in the commercial banks’ performance. Moreover, the study found out that e-banking strategies of agency banking and mobile banking are statistically significant predictors (p<0.01, while internet banking and ATM banking are statistically insignificant predictors (p>0.01). Based on these findings, the study concludes that rely on e-banking strategies in enhancing their performance, particularly mobile banking and agency banking. Furthermore, the study concludes that ATM banking and internet banking contribute minimally to the commercial banks’ performance in Kenya. Thus, the study recommends banks to optimize mobile banking and agency banking because they are statistically significant predictors while increasing awareness of internet banking and addressing insecurity issues of ATM banking. Thus, further research should consider establishing factors that account for the unexplained variances of 29% in the performance of commercial banks.
肯尼亚商业银行的电子银行战略与绩效
电子银行(e-banking)方面的技术创新已经逐步推进并改变了银行提供服务的方式。利用各种形式的技术创新已成为影响商业银行竞争力和绩效的关键战略。随后,银行在采用和实施创新的电子银行战略方面投入更多。尽管有许多研究考察了电子银行对世界各地银行的影响,但知识差距在于很少有研究考察了肯尼亚电子银行战略对商业银行绩效的影响。本研究的目的是预测代理银行、移动银行、自动取款机的使用和互联网银行对肯尼亚商业银行财务业绩的影响。代理理论、权变理论、创新扩散理论和技术接受理论构成了本研究的理论基础。在研究设计中,本研究采用描述性方法。目标人群由40家商业银行的管理人员组成,研究采用目的抽样的方法,选择了100名受访者,其中包括40名高级管理人员和60名运营经理。采用描述性统计、相关分析、回归分析等方法对数据进行分析。相关分析表明,手机银行(r = 806, p = 0.000)、代理银行(r = 0.737, p = 0.000)、网上银行(r = 0.466, p = 0.000)、ATM银行(r = 0.547, p = 0.000)与商业银行绩效的关系具有统计学意义。研究结果表明,电子银行对商业银行绩效变化的贡献率为71% (R2 = 0.710)。此外,研究发现代理银行和移动银行的电子银行策略是具有统计学意义的预测因子(p0.01)。基于这些发现,该研究得出结论,依靠电子银行策略来提高他们的绩效,特别是手机银行和代理银行。此外,研究得出结论,ATM银行和互联网银行对肯尼亚商业银行绩效的贡献最小。因此,该研究建议银行优化手机银行和代理银行,因为它们是统计上显著的预测因素,同时提高了对网上银行的认识,并解决了ATM银行的不安全问题。因此,进一步的研究应该考虑建立能够解释商业银行业绩中29%的无法解释的差异的因素。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
自引率
0.00%
发文量
0
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信