Factors influencing adoption of Information Communication Technology Banking in Commercial banks in Kenya: a case study of Kenya Commercial Bank, Kencom House branch, Nairobi County, Kenya

Abstract

The study was aimed at establishing the factors that influence adoption of Information and communication technology in commercial banks in Kenya. The study was aimed at finding out the extent to which commercial banks are adopting ICT banking. It was also aimed at determining if the adoption of Information ICT banking will improve institutional performance and service delivery to the clients. Previous IT initiatives did not give expected results. The bank had adopted a strategy of offering its services through a decentralized system and relies heavily on Business Development Officers to recruit, train, lend and recover money loaned to clients there is a heavy reliance on manual process in the field and banking processes. The study was descriptive and limited to Kenya Commercial banks in Kenya.

The population included the entire staff of Kenya Commercial Bank and a census was taken for purposes of the study. Questionnaires were the main mode of data collection due to the geographical disparity of the staff at the institution. The study utilized a questionnaire set out in a likert scale to get responses from a census of Kenya Commercial Bank. The data was analysed and the study was expected to find that adoption of ICT banking improved service delivery and institutional performance. The study found out that the adoption of ICT had a major impact on service delivery and institutional performance of banks. The study concluded that ICT banking adoption had an impact on operational efficiency, cosfreduction, customer service and competitiveness of the organization.

As a way of recommendation, banks need to invest in relevant technologies after thorough and careful assessment of their requirements. Further research is necessary as the findings were based on a relatively small sample that may have influenced the nature of results that were obtained. There is need to expand on the sample size and carry out similar research in other banks. There is a need for further research to be conducted on existing ICT banking services for example biometric Auto Teller Machines's, banking point of sale service points. This will be aiming at reducing the complexity associated with ICT banking.