How Does Deforestation Impact Birds?

How Does Deforestation Impact Birds? INTRODUCTION This assignment is based on the impact of deforestation on bird communication. Basically, there are two ways in which birds communicate, that is by powerful sight and vocal sound. They also have an important hearing also since they would have to different sounds produced by their own kind. Hearing is actually affected by noise produced from their environment. Because they have to fly all the time their vision has to be very active hence, they are well protected by nictating glands. They dont have binocular vision and this permit them to view all round vision. These well developed senses help birds to live in their habitat without much disturbance since they detect change quickly and migrate to safer grounds. Deforestation on bird Communication It is stated by (Raven 1988) that two-thirds of the worlds species are found in the tropical rainforest. Due to advance technologies and the demands of the worlds population for adequate survival there has been rapid deforestation increase globally that has resulted in extinction of species. Since most species are not discovered as yet, an accurate record on the loss of species may not be present. Only the ones registered under the IUCN will be accounted for. Generally, the total number of species lost globally will be difficult to retrieve rather than species found in a given region. Species that are not endemic will become threatened/endangered easily due to the fact that they havent yet be rediscovered. In todays world deforestation has made a great impact on bird communication by influencing their habitat and lifestyle simultaneously hence, emphasis is being placed to rectify the forthcoming effect on this outcome. Deforestation is known as the removal or destruction of large areas of rainforest and vegetation to fulfill the needs of the population. More than 80% of the earths natural forest have been removed already (national geographic). This activity is carried out by loggers who see this as a job opportunity since, it is being enhanced into lumber used for construction and decorative purposes. Loggers do this on a large scale without allowing the forest to revive. Farmers clear natural vegetation by the common slash and burn method, among others for agricultural purposes in which they gain an income and consume for survival. When the soil becomes depleted of nutrients they clear another area and leaves the former to erode away rather than replant. Natural disaster also plays a part in deforestation, some parts in the US have extensive forest fires that removes forest lives at extreme temperature. Forested areas is being exploited by policy makers to allocate housing for the growing populati on and mining activities to provide jobs for individuals. Construction of dams to maintain a affordable lifestyle for humans have also lead to deforestation and removal of biodiversity for comforting one population neglecting the others. Because of these activities other organisms has to pay the price by being endangered. There will be a reduction of biodiversity since their habitat is destroyed and those who can adapt very quickly will have no problem. Flooding of ecosystem will take place due to erosion of soil and no vegetation to infiltrate water hence, water table will be lowered. Limited space will be provided for adapted animals to share so their foraging activities will be reduced along with food supply. Drought will be more common since temperature will rise, surface water and that of plants will not be available for evaporation hence, amount of rainfall will be reduced. Lastly, there will be an increase in greenhouse effect which leads to global warming. Stated in NATIONAL GEOGRAPHIC article â€Å" Trees are natural consumers of CO2 which is one of the greenhouse gas that contributes to global warming by building up in atmosphere. Destruction of trees remove C-sink, release more CO2 by tree burning and decomposition.† Picture below shows large scale deforestation. Bird communication basically when a bird sings to claim a personal territory (Dr. Lee). They  tend to mark a particular property in a particular place which they need to do to show ownership among species. The sound is produced by their vocal organ or syrinix located between the junction of their trachea and bronchi. It is used as a communicatory device and also as body language communication to suit their environment and various situations in reply to their lifestyle and ecological behaviour. These include their feeding and foraging behaviour, they require large space among species to gain access to food. Hence, they sing to mark their territory of food and give indication for colleagues to feed. They would want no intruder and tend to extend their territory for alternative food supply. They give a warning call when they sense danger and also make sounds to evade predators. In some cases they use silence as a warning call so they wouldnt be detected by predators e.g. hawk. During flocking and social behaviour sound is needed to communicate among themselves and even others, in fighting and marking territory, courtship and mating, in nesting and parental behaviour and finally, in the display of male dominance. All these behavioural pattern requires a different sound to distinguish what sort of situation they are in before one can actually render assistance. Birds live conspecific in their habitat, by doing so they create a niche that would benefit them in every possible way such as easy feeding access, a range to forage in and a habitat they could call their own. The range would provide birds with food so that there will be no need for them to waste energy to acclimatize to a new source hence, feeding becomes accessible anywhere, anytime in that particular habitat unless there is disruption. Since their metabolic rates are high they would require a large amount of food hence, they have to indulge in foraging activities to supply themselves. After constantly ex ploiting a habitat they would have to adjust to new food sources or find other resources, thus a new habitat will be selected as long as they can survive efficiently. Thereby, more large spaces becomes available for them to graze and procreate. Deforestation entails the complete displacement of bird species or habitat loss by the large scale removal of canopy, trees and vegetation. These places provide a source of shelter and food for birds. In the trees most birds dwells especially when humidity is low, they rest and cool down in trees. In this thick vegetation a wide range of shade is provided hence, the area would have a lot of other wildlife that is used as s source of food for birds so they wouldnt have to fly long distances in search of food. There will also a continuous supply of of plant matter that specific birds feed on thus, these components will provide a community of bird species to inhabit this region. The removal of trees decrease the food supply of birds and they would have no place to call their habitat. There will be an imbalance of ecosystem. Birds will have to find new habitat to acquire their daily nutrient requirements. This may pose a problem since, there is no guarantee that the niche would be empty to accept birds. Other species may live there hence, food has to be shared and intrusion of privacy may occur. Some birds can tolerate these condition while others cant so you will find that the ones to adapt to this environment will survive (survival of the fittest) while the other will continue to roam if they find no satisfactoryly place their number will gradually decrease leading to extinction because there is no food to supply them. Now, if too many species inhabit the same habitat competition will lead to some species dying out and that habitat will be exploited over a short period of time. The cutting down of trees would leave the top soil vulnerable to leaching and erosion and void of any meaningful life. This would mean that birds who act as pollinating agent will not be able to do so anymore so land is left to become barren. Regrowth may take many years to occur. In well established habitat various species would create microhabitat in which they can carry out their person al activities such as breeding and reproduction. If no home is present birds cannot lay hence, their population will be reduced. They are also more exposed to predator since they will have no hiding space leaving more chances for them to become endangered. Birds in this state would have no social life since they would have to keep moving and get accustomed to new species, even if their used to be a benefit for their survival. The environment will also become unsuitable for mating since there will be no site for courtship because there will be a lack of provision of basic materials. In terms of nesting, materials will not be available to construct a comfortable nest for young to survive. When mother would go in search of food to feed them they will be more prone to predators since they will not be able to run away or defend themselves by flying high in trees because their is none and they would not be strong enough to give a warning call or produce a sound that would scare predator a way so they are being feasted upon. There will be no territory to mark since they lose all their living and feeding habitat. The land becomes dry and barren over time hence, tamper with the the nature and influence life forms in forested areas. Land becomes unproductive and serves no purpose. In the cases of natural deforestation it can be beneficial in some ways. It removes the vegetation cover but it also brings with it a rejuvenation of forest by adding other nutrients that can make the area favourable for a new group of species. It provides a variability of ecosystem over a period of time. Artificial deforestation change the whole balance of an ecosystem and birds lifestyle. It exhaust the soil and invade wildlife species. It weaken a forest resilience ability by exploitation of its resources and presistence. In Central Amazonia some species of galliform birds that disperses seed is being threatened due to hunting and habitat destruction (Mr. Borges). Because of deforestation there is need now for the conservation of these birds. Their reproduction is limited if they arent present in their natural environment. They tend to survive quite adequately in a regrown forest. In Southeast Asia there is quite a few numbers of threatened bird species (Thomas Brooks et al). this is due to the large scale deforestation done, which was suppose to held develop the countries. He thought only endemic bird would be prone to extinction. Based on the result he collected there was fluctuation between increased and decreased number of species. He concluded that deforestation affects species with small range and also bird species that will become extinct is very similar to the ones listed as threatened. In Australia a survey was done on quite similar bird species (Westphal et al) which showed that these birds adapted well to changes made in a few places in their inhabited forested area. They were able to live comfortably without making changes to their lifestyle. These birds are small and are very long distance flyers so they can adapt very easily. Based on the following investigation it can be concluded that some birds are vulnerable to complete habitat destruction. Some birds can withstand partial destruction of their habitat while some can adapt to the changing environment. This is due to the nature and structure of the birds as in how quickly they can do things for themselves i.e. some birds can fly and some cant and so on. If forested areas are gradually disappearing, some time in the future all birds are bound to be affected due to increasing predator-prey relationship, place to shelter and mostly because of a decline in food supply. To combat a situation like this policy makers are calling on leaders around the world to make a change. This can be done by sustainable forestry where parts of the forest removed is being replaced before it can be used again. In doing so, CO2 level will not increase in the atmosphere hence, more fresh oxygenated air will be available for bird to breathe in. Reforestation should also be carrie d out in areas than was completely exploited. This may take years so the future species will benefit if we start now since it is not a money consuming process. The little forest that remains should be conserved by using it wisely so that wildlife can be preserved and eco-forestry can be established. In other words by just having a forest pays, people actually pays to have a view of the various bird species worldwide. Legal wildlife trade can also be carried out to expand species richness. In addition to the decline of birds due to deforestation, it is not yet fully understood since much effects of this hasnt been stated clearly. A report carried out by (Duston et al) noted that in primitive times when deforestation was minimum bird species was still going extinct even before they became known to science but no reason was recorded for this. This must have been because the birds were hugh and clumsy hence, they were hunted to extinction. Most of them must have been flightless, competed for food and environmental conditions became unfavourable. Thus, modern birds evolve more efficiently for fast flight and increased activities. REFERENCES www://henriquebourges/artikelen/surinam/Z/Zwarte%20Hokko1 09/1988.pdf/09/11/10th geographic.com/eye/deforestation/effect.html/1996-2009/09/11/10th farmerking/avianbiology/vol1,2,34/1971/academicpress/n.ylondon/09/11/13th http://espace.library.uq.edu.au/eserv/UQ:10074/hp_le_18/2003.pdf/0911/10th

lots of words :: essays research papers

Why should we build up a Start-up vocabulary quickly? Draft v1.1. August 4, 2002 Rob Waring This page is at http://www1.harenet.ne.jp/~waring/vocab/principles/early.htm ?@ Abstract This article will examine the reasons why it is important both linguistically and psychologically to build a vocabulary quickly when learning a foreign language. The article asserts that very little can be achieved or learned in a foreign language with a small vocabulary and that by building a sizable vocabulary quite quickly one can soon be able to function adequately. You may also wish to look at http://www.jalt-publications.org/tlt/files/95/feb/meara.html ?@ Introduction ?@ It is obvious that in order to learn a foreign language one needs to learn many many words. But how many? Educated English native speakers have a vocabulary of about 20,000-25,000 word families (A 'word family' refers to a group of words that share the same basic meaning e.g. create, creation, creating, created, creative etc), foreign learners of English need far fewer[1].The speaking vocabulary is usually said to be half of the reading and writing vocabulary. Foreign learners of English only need about 3000-5000 word families to be quite competent in speaking and listening to English. This is great news for learners of English because their task is much easier than that of native speakers! ?@ One of the reasons for this seemingly small number is the nature of words and the frequency with which they appear in a language. Not all words are equal because some words such as time, the, come, make, and so on are very common whereas others such as parasol, bombastic and edifice are relatively rare and not met everyday. It therefore seems clear that these frequent words should be among the first words to learn because they will be met most often and will be needed frequently in speech or writing. Thus the pay off for learning them is higher than for an average rare word. These words are often called a General Service Vocabulary because these words are found in many kinds of situations and domains. This is a vocabulary of about 2000 word families. The best list (although it is a bit dated is Michael West's 1954 list called the General Service Word List.) These General Service words are found a very very wide range of contexts such as in the medical world, in novels, in scientific reports, on web pages, in daily conversation, in politics and so on. Because these words appear in so many contexts they are extremely useful to almost all learners.

Impact of mobile and internet banking Essay

Abstract Financial institutions have been in the process of significant transformation. The force behind the transformation of these institutions is innovation in information technology. Information and communication technology is at the Centre of this global change curve of mobile and internet banking in Kenya. Rapid development of information technology has made banking tasks more efficient and cheaper. This study sought to  determine the impact of mobile and internet-banking on performance of financial institutions in Kenya where the survey was conducted on financial institutions in Nairobi. The study also sought to identify the extent of use of mobile and internet banking in financial institutions. The study investigated 30 financial institutions. The study found that the most prevalent internet banking service is balance inquiry while the least is online bill payment. Cash withdrawal was the most commonly used mobile banking service whereas purchasing commodities was the least commonly used. CHAPTER ONE. INTRODUCTION. Background of the study Mobile banking is an innovation that has progressively rendered itself in pervasive ways cutting across several financial institutions and other sectors of the economy. During the 21st century mobile banking advanced from providing mere text messaging services to that of pseudo internet banking where customers could not only view their balances and set up multiple types of alerts but also transact activities such as fund transfers, redeem loyalty coupons, deposit cheques via the mobile phone and instruct payroll based transactions (Vaidya 2011). The world has also become increasingly addicted to doing business in the cyber space, across the internet and World Wide Web. Internet commerce in its own respect has expanded in various innovative forms of money, and based on digital data issued by private market actors, has in one way or another substituted for state sanctioned bank notes and checking accounts as customary means of payments (Cohen 2001). Technology has greatly advanced playing a major role in improving the standards of service delivery in the financial institution sector. Days are long gone when customers would queue in the banking halls waiting to pay their utility bills, school fees or any other financial transactions. They can now do this at their convenience by using their ATM cards or over the internet from the comfort of their homes. Additionally due to the tremendous growth of the mobile phone industry most financial institutions have ventured into the untapped opportunity and have partnered with mobile phone network providers to offer banking services to their clients. ATM  banking is one of the earliest and widely adopted retail e-banking services in Kenya (Nyangosi et al. 2009). However according to an annual report by Central Bank of Kenya its adoption and usage has been surpassed by mobile banking in the last few years (CBK 2008). The suggested reason for this is that many low income earners now have access to mobile phones. A positive aspect of mobile phones is that mobile networks are available in remote areas at a low cost. The poor often have greater familiarity and trust in mobile phone companies than with normal financial institutions. Banking In general terms, banking is the business activity of accepting and safeguarding money owned by other individuals and entities and then lending out this money in order to earn a profit. The Banking Act of Kenya defines banking to mean the accepting from members of the public of money on deposit repayable on demand or at the expiry of a fixed period or after notice, the accepting from members of the public of money on current account and payment and acceptance of checks and the employing of money held on deposit or on current account or any part of it by lending, investment or in any other manner for the account and the risk of the person so employing the money. Currently Kenya has 43 licensed commercial banks of these, 31 are locally owned and 12 are foreign owned. Citibank, Habib Bank, standard chartered and Barclays Bank are among the foreign-owned financial institutions in Kenya. The government of Kenya has a substantial stake in three of Kenya’s commercial banks. The remaining local commercial banks are largely family owned. Commercial banks in Kenya accept deposits from individuals and make a profit by using the deposits to offer loans to businesses at high interest rates. These banks are regulated by the Central Bank Act and the Companies’ Act, which stipulates the activities they should be engaged in, the rules on publishing of financial statements, minimum capital requirements as well as reserve requirements. Examples of new innovations in the Kenyan banks include adoption of ATMs, smart cards, internet and mobile banking as discussed below. Mobile banking Mobile banking (m-banking) refers to provision and availment of banking and  financial services through the help of mobile telecommunication devices. The scope of offered services may include facilities to conduct bank and stock market transactions, administer accounts and to access customized information. Mobile networks in Kenya offer m-money services in the name of M-pesa by Safaricom, Orange money by Orange, Yu-cash by Essar, and Airtel money by Airtel. Currently the mobile money market size is about 15 million users transferring Kshs. 2 billion daily, of these over 14 million are Mpesa customers. M-money providers have partnered with commercial banks such as Equity Bank, I&M Bank, and Kenya Commercial Bank, Barclays and Co-operative to offer mobile based financial products that aim to reach the unbanked. Internet banking Internet banking (e-banking) is the use of internet and telecommunication networks to deliver a wide range of value added products and services to bank customers (Steven, 2002) through the use of a system that allows individuals to perform banking activities at home or from their offices or over the internet. Some online banks are traditional banks which also offer online banking, while others are online only and have no physical presence. Online banking through traditional banks enables customers to perform all routine transactions, such as account transfers, balance inquiries, bill payments, and stop-payment requests, and some even offer online loan applications. Customers can access account information at any time, day or night, and this can be done from anywhere. Internet banking has improved banking efficiency in rendering services to customers. Financial institutions in Kenya cannot ignore information systems since they play an important role in their operations because custome rs are conscious of technological advancements and demand higher quality services. Problem Statement A fundamental assumption of most recent research in operations improvement and operations learning has been that technological innovation has a direct bearing on performance improvement (Upton and Kim, 1999). Strategic management in financial institutions demand that they should have effective systems in place to counter unpredictable events that can sustain their operations while minimizing the risks involved through  technological innovations. Only financial institutions that are able to adapt to their changing environment and adopt new ideas and business methods have guaranteed survival. Some of the forces of change which have impacted the performance of financial institutions mainly include technological advancements such as use of mobile phones and the internet. Since the beginning of e-banking Kenyan financial institutions have witnessed many changes. Customers now have access to fast, efficient and convenient banking services. Most financial institutions in Kenya are investing large sums on money in information and communication technology (ICT). However while the rapid development of ICT has made some banking tasks more efficient and cheaper, technological advancements have their fair share of problems; for example they take a large share of bank resources, plastic card fraud particularly on lost and stolen cards and counterfeit card fraud. Thus there is a need to manage costs and risks associated with internet banking. It is crucial that internet banking innovations be made through sound analysis of risks and costs associated to avoid harm on banks performance. Bank performance is directly dependent on efficiency and effectiveness of internet banking and on the other hand tight controls in standards to prevent losses associated with internet banking. In order not to impair on their prosperity, financial institutions need to strike a balance between tight controls and standards in efficiency of internet banking. This is only possible if the effects of internet banking on financial institutions and its customers are well analyzed and understood. Mobile money has emerged as a strong competition to financial institutions in Kenya. Initially cellular phones were developed to improve communication from the earlier primitive forms of communications such as smoke and drums. Financial institutions introduced ICT as an improvement to the banking channels. This has thus enabled bank customers’ access information relating to their accounts, (Tiwari, Buse and Herstatt, 2007.). In this regard mobile phone service providers have taken mobile money services deeper into the financial sector by offering a range of financial services through their networks. The CBK and the Communication Commission of Kenya (CCK) have allowed service providers to offer mobile money services as there appears to be no reprieve as competition in the mobile money business is still heating up with entry of new money transfer systems which now allow transactions across all mobile  telephone service providers like M-pesa. Objectives of the study. The study objectives are: To establish the impact of mobile and internet banking on the performance of financial institutions in Kenya. To establish the extent of use of mobile and internet banking in financial institutions in Kenya. Significance of the study The study will be crucial to emerging financial institutions as it will provide answers to the factors against the implementation of internet banking in Kenya, prove of the success and growth associated with the implementation of internet banking and highlight the areas of banking operations that can be enhanced via internet banking. It is equally significant for bank executives and indeed the policy makers of the banks and financial institutions to be aware of internet banking as a product of internet commerce with a view to making strategic decisions. The study is also expected to give an insight on the state of mobile money services as a competition to the commercial banks in Kenya and the factors that have greatly influenced its growth. Players in the financial institution sector and telecommunications industry will find the study useful as they can use the findings to strategize on how they can mutually benefit from this development. Finally, our study adds to the existing literature, and is a valuable tool for students, academicians, institutions, corporate managers and individuals who want to learn more about mobile and internet banking. Limitations of the study In undertaking this study a number of challenges were faced. There was bureaucracy in getting approval to respond to questionnaires with most institutions insisting that permission be sought from the Chief Executive Officer or Human Resource Manager. This led to delays in obtaining the required responses for data analysis in time. Some customers were unwilling to divulge information and seemed to not have time to fill in the questionnaires. CHAPTER TWO. Literature Review. This chapter seeks to explore in depth the concept of internet and mobile banking through a review of the various theories as well as empirical studies. Theoretical framework Theory of information production and contemporary banking theory Diamond (1984) suggested that economic agents may find it worthwhile to produce information about possible investment opportunities if this information is not free; for instance surplus units could incur substantial search costs if they were to seek out borrowers directly. There would be duplication of information production costs if there were no banks as surplus units would incur considerable expenses in seeking out the relevant information before they commit funds to a borrower. Banks enjoy economies of scale and have expertise in processing information related to deficit units (borrowers). They may obtain information upon first contact with borrowers but in real sense it’s more likely to be learned over time through repeated dealings with the borrower. As they develop this information they develop a credit rating and become experts in processing information. As a result they have an information advantage and depositors are willing to place funds with a bank knowing that this will be directed to the appropriate borrowers without the former having to incur information costs. Bhattacharya and Thakor (1993) contemporary banking theory suggests that banks, together with other financial intermediaries are essential in the allocation of capital in the economy. This theory is centered on information asymmetry, an assumption that â€Å"different economic agents possess different pieces of information on relevant economic variables, in that agents will use this information for their own profit† (Freixas and Rochet 1988). Asymmetric information leads to adverse selection and moral hazard problems. Asymmetric information problem that occurs before the transaction occurs and is related to the lack of information about the lenders charact eristics, is known as adverse selection. Moral hazard takes place after the transaction occurs and is related with incentives by the lenders to behave opportunistically. Innovation diffusion theory Mahajan and Peterson (1985) defined an innovation as any idea, object or practice that is perceived as new by members of the social system and defined the diffusion of innovation as the process by which the innovation is communicated through certain channels over time among members of social systems. Diffusion of innovation theory attempts to explain and describe the mechanisms of how new inventions in this case internet and mobile banking is adopted and becomes successful Clarke (1995). Sevcik (2004) stated that not all innovations are adopted even if they are good it may take a long time for an innovation to be adopted. He further stated that resistance to change may be a hindrance to diffusion of innovation although it might not stop the innovation it will slow it down. Rogers (1995) identified five critical attributes that greatly influence the rate of adoption. These include relative advantage,compatibility,complexity,triability and observability.According to Rogers, the rate of adoption of new innovations will depend on how an organization perceives its relative advantage, compatibility, triability,observability and complexity.If an organization in Kenya observes the benefits of mobile and internet banking they will adopt these innovations given other factors such as the availability of the required tools. Adoption of such innovations will be faster in organizations that have internet access and information technology departments than in organizations without. Empirical studies Internet banking Recent literature has a narrow focus and ignores internet banking almost entirely; it equates internet money with the substitution of currency with internet gadget. For instance Freedman (2000) suggests that internet banking and internet money consists of three devices; access devices, stored value cards, and network money. Internet banking is simply the access to new devices and is therefore ignored. Internet money is the sum of stored value (smart cards) and network money (value stored on computer hard drives). Santomero and Seater (1996), Prinz (1999) and Shy and Tarkka (2002) present models that identify conditions under which alternative payments substitute for currency. Most of these models indicate that there is at least a  possibility for internet substitutes for currency to emerge and flourish on a wide scale depending on the characteristics of the various technology and those of the potential users. Friedman (1999), intimated that internet banking presents the possibility that an entire alternative payment system not under the control of the Central Bank may arise. Today computers make it at least possible to bypass the payment system altogether, instead using direct bilateral clearing and settlement (Friedman, 1999). Trends in mobile and internet banking in Kenya With the emerging wave of information driven economy, the banking industry in Kenya has inevitably found itself unable to resist technological indulgence. This has led to a boom in development of mobile banking laying down a strong base for low cost banking, and growth of mobile phone use in rural Kenya. Standard Chartered in 2009 launched its mobile banking in seven markets in Africa. In the Kenyan market it offers a number of services on a unique, user-friendly platform called Unstructured Supplementary Services Data (USSD) and is only available on GSM carrier networks which enable customers to access banking in real time, anywhere in the world, through their mobile phones. The platform is a convenient menu-driven application that is not dependent on specific customer handsets and does not need to be downloaded. Barclays bank’s m-banking platform is known as ‘hello money’. It allows customers to carry their bank in their mobile and access banking services anytime/anywhere on the move. Unlike other players in the sector this is all for free. Co-operative bank pioneered mobile banking way back in 2004 by enabling customers to access their accounts and transact using their mobile phones. It offers services such as balance enquiries, mini-statements, SMS alerts on credit and debit transactions to an account, pay utility bills and funds transfer. Equity bank on the other hand has its own m-banking platform known as Eazzy 24/7 offering services similar to those of co-operative bank. Telephone and PC banking is a facility that enables customers, via telephone calls, find out about their position with their bankers by merely dialing the telephone numbers given to them by the banks. In addition, the computers on the phone would require special codes given to the customers as a mea ns of identification of authentic users before they can receive any information they requested for. Telephone and PC banking brings the bank to the doorstep  of the customer, it does not require the customer to leave his premises. The card system is a unique internet payment type. Smart cards are plastic devices with embedded integrated circuit being used for settlement of financial obligations. Depending on the sophistication, it can be used as a Credit Card, Debit Card and ATM cards. The cards are internetally loaded with cash value and can be carried around like cash and store information on a microchip. The microchip contains a â€Å"purse† in which value is held internetally. In addition, it also contains security programs which protect transactions between one card user and the other. It can also be transferred directly to a retailer, merchant or any other outlet to pay for goods and services, and like cash, transactions between individuals without the need for banks or any other third parties. Also, the system does not require central clearing, it is valued immediat ely. CHAPTER THREE. Research Methodology A research methodology guides the researcher in collecting, analyzing and interpreting observed facts (Bless and Achola, 1988). This chapter introduces the logical framework to be followed in the process of conducting the study. It is divided into: research design, population and sample, data collection and data analysis. Research Design According to McMillan and Schumacher (2001) a research design is a plan for selecting subjects, research sites and data collection procedures to answer the research questions. It is the conceptual framework within which research is conducted and constitutes the blueprint for the collection of data and the analysis thereof of the collected data Based on the purpose of the study and the type of data involved, descriptive and qualitative research designs were used. The goal was to provide a clear understanding of mobile and internet banking and its usage in financial institutions and therefore conclude on the impact it has had on their performance. Qualitative data was collected from the managers, subordinate staff as well as from customers of the financial institutions. Population and Sample. Cooper and Emory (1995) define population as the total collection of elements about which the researcher wishes to make some inferences. An element is the subject on which the measurement is being taken and is the unit of the study. The population of interest in this study consisted of 61 financial institutions operating in Kenya of which only 30 responded. The managers, employees and customers were targeted as the key respondents. There was a need to sample the population because not all the population elements use mobile and internet banking. The study therefore used stratified sampling. This is the process of dividing members of the population into homogeneous subgroups before sampling. The strata should be mutually exclusive: every element in the population must be assigned to only one stratum. Financial institutions were classified according to microfinance institutions, SACCOS and commercial banks where 2 microfinance institutions, 11 SACCOS and 17 commercial banks were sampled . Data Collection. Primary sources were used in data collection. Open and close-ended questionnaires were administered to target respondents. In total two questionnaires were delivered: one to managers and employees and another to customers. They purposed to find out information regarding the level of usage of mobile and internet banking, demographics of the customers, services offered and used, level of satisfaction, impact on performance, opportunities for growth and challenges faced through the use of mobile and internet banking. This instrument allowed for cost and time savings for the respondents as well as the researchers. Data Analysis According to Bryman and Bell (2003) data analysis refers to a technique used to make inferences from data collected by means of a systematic and objective identification of specific characteristics. Once data is collected it has to be edited to verify to the completeness of data, coded in order to assign numbers or symbols to the various answers for effective categorization/classification, entered in order to convert the information gathered to a medium for viewing and manipulation (e.g. excel or statistical  package for social sciences SSPS) and finally displayed through the use of frequency tables and charts. Collected data was analyzed using both quantitative and qualitative measures. Qualitative data regarding customer level satisfaction, challenges faced demographics and services provided and used were analyzed using content analysis to measure the semantic contents of the message. Qualitative data was analyzed using statistical data analysis. The data was tabulated in pie-cha rts, tables and graphs for easier understanding and presentation. Data Analysis and Interpretation This section presents the data analysis, findings and discussion of the study in line with the research objectives of the study, the study’s research objective was to establish the impact of mobile and internet banking on financial performance of financial institutions in Kenya. To achieve the objective the research raised a number specific objective; to establish the extent of use of mobile banking and the extent of use of internet banking in financial institutions in Kenya. Data analysis The response rate of the questionnaires from the three types of institutions under study was fairly high, out of the 98 questionnaires sent to the respondents, 64 questionnaires both from customers and managers/employees were returned for analysis. To enhance the quality of the data obtained structured questions were used whereby the respondents were asked to give various indicators on mobile and internet banking. Various data were collected to satisfy this study in accordance with the methodology. The software that was used for the following analysis was Microsoft excel and Statistical Package for Social Sciences (SPSS). Summary The study revealed that among the financial institutions surveyed, commercial banks had the highest usage of internet banking at 43.3%, SACCOs had the second highest usage of internet banking whereas none of the microfinance institutions used internet banking.Amongst all the financial institutions surveyed commercial banks had the highest usage of mobile banking, SACCOs the second highest whereas MFIs had the least usage of mobile banking even though all of them used mobile banking. Of the services provided by financial institutions via internet banking the service that customers used most was online balance inquiry (40%) whereas the least used service was online bill payment (3.3%). According to the financial institutions the customer turn out level was high (63.3%) as a result of the use of internet banking. 66.7% of the respondents indicated that internet banking had a positive impact on performance whereas only 6.7% indicated that it had not impacted on performance of the financi al institutions Conclusion The study was able to achieve the set objectives; to explore the impact of mobile and internet banking on performance of financial institutions, as well as the extent of use of mobile and internet banking, by surveying a representative sample of financial institutions within Nairobi. The study found that commercial banks had the highest rate of usage of internet  banking among the financial institutions sampled. SACCOS are slowly adopting internet banking, while micro finance institutions have not yet adopted internet banking. The study revealed that the most prevalent internet banking services were seeking product rate information and the use of online credit cards. Since its introduction in mid-2005, the adoption of internet banking has been slow due to impaired unavailability of infrastructure and lack of supportive legislation for internet banking (Nyangosi et al 2009). However the adoption of internet banking has enhanced performance of the banking industry due to increased efficiency, effectiveness and productivity. The study found that mobile banking faces various challenges among them being, system delays by the mobile money transfer service providers, slow processing of transactions especially during the weekends, high transactions costs, limit on the amount of money that can be withdrawn in a day and fraud. These challenges can be solved through regular maintenance of mobile money transfer systems which will help in managing the systems’ capacity and in turn address the problem of transaction delays and improve customer service through speedy support and lower user charges. Suggestions for further study The study focused on the impact of internet and mobile banking on financial performance of financial institutions in Kenya while its evident its rampant growth impacts on the overall economy as well. Therefore, a study should be conducted to investigate the impact of mobile and internet banking on the economy.The study found that mobile banking has been adopted at a faster rate than internet banking therefore a study needs to be conducted to investigate why this is the case. References: Berestien, A. (1998), Monetary Policy Implications of Digital Money, Kyklos, Vol. 51. Bhattacharya, S. and A. Thakor (1993), ‘’Contemporary Banking Theory,’’ Journal of Financial Intermediation 3, 2-50. 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