The Impact of Barriers and Benefits on Adoption Readiness of Robotic Process Automation in Kenyan Commercial Banks

Abstract

Players in the banking industry are facing significant internal and external challenges in the present business and technology environment. There is pressure on the players to improve operational efficiencies, reduce costs, improve on quality, demonstrate business value to stakeholders, meet compliance requirements, and more subtly achieve end-to-end customer service and satisfaction. The main objective of the study was to investigate the adoption of Robotic Process Automation in Kenyan Commercial Banks. Based on the nature of the study topic, the research was anchored on the theory of reasoned action, technology acceptance model, Igbarias model and diffusion of innovation theory. This study employed descriptive research over a population of 41 commercial banks. Primary data was collected for the research. A census was designed and targeted two employees in the Information and Technology and research and innovation departments from the 41 banks as per the research design. Both descriptive and inferential statistics were computed in data analysis process. With a unit advancement in perceived benefits, the study found that the resulting effect on RPA adoption is a positive factor of 0.507 which according to the findings, was statistically significant (α=0.000). When commercial banks get to know that if implemented correctly RPA can very quickly bring greater efficiency to business processes, there will be enhanced implementation process due to perceived benefits. Based on the relation between barriers and the adoption of Robotic Process Automation in Kenyan Commercial Banks, the study established that every single unit of technology barrier reduces RPA implementation by 0.072 units although according to the findings, it effect is insignificant (α=0.068). As a result, the study recommends that the management of commercial banks should consider implementing appropriate RPA process to increase benefits that accompanies implementation of the technology. Banks should incorporate Robotic Process Automation for faster process execution and operational efficiency The study therefore recommends that it is time you switch to smart banking operations. Although the study established that barriers to RPA adoption reduces the speed of its implementation, the management of commercial banks should enhance research and development strategies to identify the best way of dealing with the barriers to ensure swift implementation process. Employees should also be trained to facilitate implementation RPA process