Effect Of Electronic Banking Technology On Financial Inclusion In Kenya

ABSTRACT

The Effects of Electronic Banking on financial inclusion in Kenya is not well documented. Recent studies on electronic banking have over-emphasized on the factors that affect this mode of banking. This study sought to determine the effects of electronic banking on the financial inclusion. The study sought to assess the effect of mobile banking, internet banking and agency banking on financial inclusion. This study used a descriptive research design. Stratified random sampling was employed to select commercial banks which have advanced in electronic banking and operating in Narok town. The study only used both primary and secondary data which was collected by use of a questionnaire and from financial statements of the bank. Data was analyzed using descriptive analysis, where the frequency and percentages and means were computed. Micro soft excel and Statistical package for social sciences. The results reveal that the electronic banking had a positive influence on the financial inclusion of commercial banks in terms of transactions, capital adequacy, markets share and the size of the assets. It was also noted that there has been increased number of use of banking services through agency and mobile banking and this has   improved financial inclusion. The study concludes that the adoption of electronic banking by commercial banks in Kenya has resulted in improved performance over the years because of inclusion. The study recommends that commercial banks should increase their focus and investments in electronic banking especially mobile banking and agency banking because they are the most accessible and widely   used by customers as this is the future of the banking industry in order for them to remain profitable.