Factors Affecting Customers’ Use Of Information And Communication Technology In The Banking Industry In Kenya. A Case Of Kenya Commercial Bank Nyeri, Kenya

Abstract

In Kenya Information and communication technology adoption has been a slow process due to lack of proper national policies that ensure quick adoption. Banking industry for instance has seen a gradual and faster growth in terms of ICT structure and IT platform. However, this investment in new ICT systems and new technologies has not been well accepted by the end users; the customer who still believe in the older slower ways of banking as compared to the new banking systems that are faster and cheaper. This study therefore sought to investigate the factors that affect ICT use by customers in the banking industry with specific reference to Kenya Commercial Bank Nyeri, Kenya. The study was guided by the following objectives; To examine how customers’ demographic characteristics influence their use of ICT, to find out the influence of education on ICT use, to assess the influence of security concerns on customers' use of ICT and to determine the influence of system quality on customers’ use of ICT.This study employed a descriptive survey research design using structured questionnaires to gather data from the respondents. This research targeted a population of 23,437 Kenya Commercial Bank Nyeri, customers. A sample size of 204 customers was selected using simple random sampling for analysis from this population. The data collected was analyzed by use of descriptive statistics. The study also used Pearson’s product moment correlation to test the relationship between the variables under study. The findings were presented in terms of tables. The findings concluded that gender had no influence on the use of ICT; there was a positive relationship between the age of the respondents and use of ICT. Education level, security fears and systems quality had a positive influence on the use of ICT The researcher recommends that banks should strive to educate their customers on the available technological advances and how to use them. Banks need to increase the security systems so as to minimize thefts and fraud. The banks also need to invest heavily on modern technology that is user friendly, accessible and convenient to the needs of the customer. The findings will be of use to the Ministry on Information and Communication, the Government, Banking sector, Kenya Commercial Bank management and the customers in general