INTRODUCTION

Today’s business environment is very dynamic and undergoes rapid changes as  result of technologies information, increased awareness and demands from customers business organization, especially the banking industry of the 21st century operates in a complete and competitive environment characterized by these changing conditions and highly unpredictable economic climate. Information and communication technology ICT is at the centre of the global change curve. Loudon and Loudon (1991) centered that managers cannot ignore information system because they play a critical role in contemporary organization .They point out that the entire cash flow of most fortune 500 companies is linked of information systems.

The application of information and communication technology concepts techniques,policies and implementation strategies to banking service has become a subject of fundamental importance and concern to all bank and indeed a prerequiste for local and global competitiveness.ICT directly affects high managers decided, how they plan and what products and service are offered in the banking industry. It has continued to change the very banks and their co-operative relationship are organized worldwide and the variety of innovative devices available to enhance the speed and glorify of services delivery.

Financial service producers should modify their traditional operating practices to remain viable in the 1990’s and the decades that flow. They claim that the most significant shortcoming in the banking industry today is wide spread failure on the part of senior management in banks to group the importance of technology and incorporate it into their strategic plans accordingly. The banking industry has witnessed tremendous changes linked with the development in ICT over the tremendous changes linked with the developments in ICT over the 16 years. The guest for survival, global relevance, maintenance of existing market share and sustainable development thus made exploitation of the advantages of ICT through the use of automated devices imperative in the industry .This study evaluates the response of Kenyan banks to this new trend and examines the extent to which they have adopted the innovative technologies in their operations and the resultant effects (Horald and Jeff1995).

Information technology and communication has provided self service facilities(automated services) fromwhere prospective customers can complete their account opening documents direct online .It assists customers to validate their account numbers and receive instruction on when and how to receive their cheque books, credit and debit cards (Loudon and Loudon 2001).