The Facets and Economic Benefits of the Information Communications Technology and Innovations Used by Commercial Banks in Kenya

Abstract

The recent developments in the Information Communication Technology (ICT) have been received with great interest in research and practice by the banking community the world over. There began to appear theoretical arguments regarding the role of information technology (IT) in creating the value chain at firms and this opened up new lines of inquiry. This paper was a survey on the business value of information communication technologies in the financial departments of commercial banks in Kenya. In recognizing the significance of ICT in economic stability and growth of a country, it should not be lost on the consumers of the technologies that risks abound in every opportunity. It has also been noted that the pace of legislating the sector much of the time is overtaken by technological advancements that are directly linked to the banking sector. The research findings and recommendations are therefore expected to assist in building into the ICT and business value at departmental level, as a body of knowledge. Data was collected from a population that comprised of forty-four commercial banks incorporated and, or licensed to operate in Kenya by 2007. It was found that the two commonly used technological tools in cash management in the finance department are the financial software and e-banking. Also, the five key economic benefits of the information communications technology and innovations that have accrued to the commercial banks in Kenya at their finance departments include: ICT use has ensured proper management of account balances at value dates; ICT has helped in the monitoring and optimization of the sales-cash circuit; ICT has led to system responsiveness to changing user needs; and ICT has helped in the coverage of exchange-rate risk. Key words: facets, benefits, information communications technology, commercial banks and Kenya.