Abstract:The aim of this paper was to determine the effect of Automated Teller Machines usage on operational performance of commercial banks in Nakuru County, Kenya. The study was guided by the research objective: to establish the effect of automated teller machines (ATMs) usage on operational performance of commercial banks in Nakuru County, Kenya.The study employed the following theories namely: Diffusion of Innovation and The Theory of Reasoned Action. The study adopted a correlational-cross-sectional research design. The study population comprised 56 employees of the 28 commercial banks. There are 31 commercial banks branches in Nakuru County, Kenya with Kenya Commercial Bank, Co-operative Bank and Equity bank having 3, 2 and 3 branches respectively which makes a total of 31 commercial banks out of which the researcher, through a simple random sampling, chose 28. Data was collected using structured questionnaires. A pilot study was conducted in Eldoret Town, Uashin Gishu County to determine validity of the research instruments where Cronbach's alpha coefficient was employed. For the purpose of determining the effect of ATMs usage on operational performance, correlation and regression analysis were carried out. The study established that ATM usage has a positive significant relationship with operational performance. The study recommends that managements of commercial banks should highly invest in ATMs as it positively influences operational performance. The study suggests that further studies should be conducted to relate ATMs with other variables like quality and flexibility.

The purpose of this paper was to investigate the effect of internet banking on operational performance of commercial banks in Nakuru County, Kenya. The study was guided by the research objective: to investigate the effect of internet banking on operational performance of commercial banks in Nakuru County. The study employed the following theories namely: Bank-Focused Theory and The Technology Acceptance Model (TAM). This study adopted a cross-sectional research design. A cross-sectional research design is a research approach in which the researchers investigate the state of affairs in a population at a certain point in time. Very often, the elements in the sample survey are selected at random to make inference about the population as a whole [21]. The study population comprised of 56 employees of the commercial banks. Since the banks are few, the study adopted a census survey. Data was collected using structured questionnaires. A pilot study was conducted in Uasin Gishu County to determine validity of the research instruments where Cronbach's alpha coefficient (0.7) was employed. Data was analyzed using correlation and regression analysis. The study established that internet banking has a positive significant effect on operational performance of the commercial banks. The study recommends that managements of commercial banks should invest in internet banking as it positively influences operational performance. The study suggests that further studies should be conducted to establish the effect of internet banking on operational performance in other sectors other than banking as the study focused only on commercial banks in order to establish whether internet banking does affect their operational performance.