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Purpose: The purpose of this study was to identify the need of creating sustainable competitive advantage in banking through technology, customer relationship management and internal marketing. Methodology: The descriptive survey research design was preferred. The population of the study was 3,193 employees of the Co-op Bank. The sampling frame was the list of employees given by the human resource department of cooperative bank of Kenya as at the close of year 2012. The unit of analysis was the employees. Stratified random sampling; was used. The sample was therefore 68 employees spread across the bank. The study used a questionnaire as the preferred data collection tool. Descriptive statistics used in the study included frequencies and measures of tendency mainly means and frequencies. Inferential statistics included correlation analysis. The tool for data analysis is Statistical Package for Social Sciences (SPSS) version 17 program. The results were presented using tables and pie charts to give a clear picture of the research findings. Results: It was possible to conclude that that the relationship between information technology and competitive advantage is positive and significant. The findings imply that customer relationship management (CRM) has a significant positive effect on competitive advantage of banks. The findings imply that internal marketing has a significant effect on competitive advantage. Unique contribution to theory, practice and policy: The study recommends that further investigation be done on the effect of information technology, customer relationship management and   internal marketing on the competitive advantage for nonbanking organizations. For instance the study can be replicated in manufacturing organizations

CREATING SUSTAINABLE COMPETITIVE ADVANTAGE IN BANKING THROUGH TECHNOLOGY, CUSTOMER RELATIONSHIP MANAGEMENT AND INTERNAL MARKERTING