Effects of technological innovations at equity bank on accessibility of banking services to small business ventures in Nakuru County

Abstract

Technological innovations play a significant role in improving efficiency of service delivery and reduction of transaction costs in the banking sector. With the introduction of technological innovations in the banking sector it was expected that accessibility of banking services would be enhanced. However this has not been the case. Therefore this study sought to investigate the effects of technological innovation on the accessibility of banking services in Equity Bank, Nakuru. The objectives of the study were to find out the effects of agency banking, mobile banking and internet adoption on the accessibility to banking services in Equity Bank, Nakuru. The study also sought to determine the level of customer satisfaction with the adoption of Information Technology on the accessibility of banking services in Equity Bank, Nakuru. The study was based on a case study design. The target population of the study was 295 registered small scale business account holders in Equity Bank, Nakuru Town. Purposive and simple random sampling techniques were used to identifying a sample size of 127 small scale business operators who held accounts in Equity Bank. The data was collected using questionnaires and a scheduled interview and the data obtained analyzed using the descriptive techniques and represented using Tables, charts and percentages. The study has concluded that technological innovation has led to increased accessibility of bank services through mobile banking, internet banking and agency banking. As a result of increased accessibility to banking services through technological innovations the bank has witnessed increased financial activities which include cash deposit, cash withdrawals, transfer of funds, balance enquiry and payment of loans. The study has also concluded that the customers’ level of satisfaction with the adoption of technological innovation was high and the customer’s experience with technological innovation was favourable. The study recommends that Equity bank should open more agency and mobile banking services in the rural areas to reach out to more customers. It also recommends that basic education on the use of the technology should be given to both the agents and the bank customers. It further recommends enhanced capacity of IT at Equity bank to handle large financial transactions in lieu of regular systems failure