Factors Limiting the Effective Performance of E-Banking: A Study of Assorted Commercial Banks in Nairobi, Kenya
Ngethe, Kamakya J.
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E-banking is a relatively new concept in Kenyan banking sector. The introduction of this concept by commercial banks was aimed at .improving efficiency and speed, in provision of financial services to their clients/customers. Efficiency and speed in service provision is cost-effective and saves time for both the commercial banks and the customers. The purpose of this ~tudy was to establish how readily the concept of e-banking has been embraced by the public, the limiting factors to the usage of e-banking and whether the encountered problems were by ·the clients themselves, the bank management, cost or the government legislation/control. This was a descriptive survey. Both primary and secondary data was collected from the banks. The raw data was subjected to SPSS (Statistical Package for Social Science) for analysis. The expected outcome of this study was to document the limiting factors for effective performance of e-banking in Kenyan banks and possible strategies to counter the Iimitations. The study findings suggest that effective performance of e-banking was due to lack or information by the customers, the management's unwillingness to effect changes, regulatory mechanisms and the tariffs which were high. The study further suggests that the cost of Installing and operating e-banking facility is high hence leading to low performance.