| dc.description.abstract | The adoption of alternative banking channels has increasingly influenced how commercial banks in Kenya perform. Notably, services like mobile banking, internet banking, and ATMs are central to enhancing banks’ operational efficiency, improving customer interaction, and driving overall institutional performance. Understanding how these alternative strategies impacted various performance indicators, played a vital role in guiding strategic choices and strengthening competitive advantage in Kenya’s banking industry. The study examined the impact of adopting alternative banking strategies and performance of the commercial banks in the country, grounding its analysis in the Resource-Based theory, the Technology Acceptance Model, and the Diffusion of Innovations Theory and Bank-Led Theory, the research examined how the adoption and strategic integration of alternative strategies affected key performance metrics, including financial performance, customer satisfaction, operational efficiency, and strategic outcomes. The study utilized a descriptive research approach to evaluate how alternative banking strategies influence performance of tier-three commercial banks operating in Nairobi City. The study focused on all 21 banks in this category, targeting a total population of 2,123 employees spanning senior, middle, and operational levels. Data was gathered using structured questionnaires administered to a purposive sample of 160 staff members across the three management levels. The data analysis was carried out using SPSS Version 26.0, incorporating descriptive, diagnostic, and inferential statistics. Results from the bivariate analysis revealed that mobile banking, agency banking, and internet banking each had a meaningful positive influence on the performance of the banks. When evaluated together in a multivariate context, mobile banking (β = 0.460, p < 0.05), agency banking (β = 0.475, p < 0.05), and internet banking (β = 0.115, p < 0.05) continued to demonstrate statistically significant contributions to enhanced bank performance. In contrast, ATM banking (β = -0.051, p = 0.451) showed no significant effect due to its p-value exceeding the 0.05 threshold. These findings highlight the critical role of digital banking strategies in improving financial outcomes, enhancing customer experiences, and boosting operational efficiency. The study advocates for increased investment in digital infrastructure, greater customer education, and broader use of technology to streamline banking services. Ultimately, the results enrich the current literature on alternative banking and offer practical guidance for banks aiming to enhance performance through digital innovation.
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