Abstract:
Internet banking is a set of financial services delivered through digital pathways. This study
sought to determine the effect of internet banking on profitability of the Kenya Commercial
Bank. Guided by the theory of financial innovations. This study applied descriptive research
design and purposive sampling to select Kenya Commercial Bank from the list of all licensed
commercial banks in Kenya as at December 31st 2020 because it is the largest bank in terms
of technology. Secondary data was extracted from the financial statements which were
analyzed using simple linear regression. The study established that internet banking was an
important factor in enhancing profitability of the Kenya Commercial Bank (β=0.087, p< 0.05).
It was concluded that profitability of the Kenya Commercial Bank was influenced by internet
banking. The findings of the study will be important in informing policy makers and bank
managers on mechanisms of enhancing their profitability. The study therefore recommended
that commercial banks that seek to enhance their profitability should embrace internet
banking.
