Influence of customer perceptions on the adoption of mobile banking service: a case of Commercial bank of Africa Nairobi county, Kenya.

Abstract

Mobile phones have emerged as a tool of convenience in today’s society. Banks have also noted this and have in light of this have developed products to tap this potential. More and more banks are moving from traditional brick and mortar branch banking to development of mobile banking services. It has however been noted that despite the banks heavy investment in mobile banking customers have not embraced the service due to a myriad of factors. This papers aim was to investigate the influence of customers’ perception on adoption of mobile banking using the case of selected branches of Commercial Bank of Africa. This study was guided by 4 hypotheses derived from the objectives of study. Empirical literature published by various scholars was reviewed. The study is grounded on the Tam Model in conjunction with the theory of perceived benefits. The interrelationship between variables under study is captured in the conceptual framework. Descriptive survey design was adopted with a target population of 107 customers from selected branches. Using the Krejcie and Morgan table for determining sample size, 86 respondents were selected to constitute the sample size for this study. The desired representation of the target population was achieved using simple random sampling and proportional sampling. An interview guide and a 6 point questionnaire were used for data collection instruments with questions constructed using 5 point likert scale. The questionnaire contained a section on respondents details with the other sections designed based on the objectives under study. Pilot testing was done using ten respondents a week prior to the actual data collection and results used to refine the data collection instrument. The questionnaire was be tested for reliability using Cronbach-Alpha Coefficient while validity was determined using content and construct validity. The results of Cronbach-Alpha indicated that all factors had a coefficient greater or equal to 0.7 which shows that the instrument was reliable. The data was analyzed using spss the results which were used for hypothesis testing, correlation analysis and generation of the regression equation Y= 1.477+ 0.380X1+ 0.210X2+ 0.029X3+ 0.024X4.The findings showed that there was a significant relationship between perceived usefulness and adoption of mobile banking service (with t statistic p value <0.0002 < 0.05) and correlation coefficient of 0.6. Similarly perceived ease of use had a significant relationship with adoption of mobile banking service (with t statistic p value <0.0004 > 0.05) and correlation coefficient of 0.410.Hypothesis H1 and H2 are supported by the results. This is in tandem with findings from other scholars who have conducted similar research. However, perceived responsive (with t statistic p value =0.818 > 0.05), correlation coefficient of 0.028 and perceived risk (with t statistic p value =0.998>0.05), correlation coefficient of 0.0002 have no significant relationship with adoption of mobile banking service. In relation to these findings, hypothesis H3 and H4 are not supported. The study recommends that banks should adopt technologies that are value adding and easy to use by customers in order to increase mobile banking adoption. Mobile banking platforms should also be secure and services made available as per the set service level agreements.