Influence of electronic mobile banking services on the performance of commercial banks in Nairobi central business district: A case of standard chartered bank Kenya

Abstract

The purpose of this study was to examine the influence of electronic mobile banking on the performance of commercial banks. The study was guided by four main objectives to establish how marketing of electronic mobile banking services influence the performance of commercials banks, to determine how costs (transactional fees) of mobile banking services influence the performance of commercials banks, to assess how security of mobile banking services influence the performance of commercials banks and lastly but not least establish how partnerships of mobile banking services influence the performance of commercials banks. The target population for the study comprised of four main branches of Standard Chartered Bank Kenya Kenya in Nairobi Central Business District location. The researcher employed descriptive research design for answering the four research questions. The sample size for the study of customers and staff members was obtained by using Yamane (1967) simplified formula for calculating sample size. It yielded three hundred and seventy eight out of a target population of seven thousand eight hundred and ninety two respondents. A representative sample for questionnaire administration from the four branches was achieved through cluster sampling. This study adopted descriptive survey design. Data collection tools whose validity and reliability had been verified were used to collect data from both implementing officers and project beneficiaries. Stratified random sampling was used to pick 378 customers who are project beneficiaries while 16 staff members were interviewed. Collected data was analyzed by use of both qualitative and quantitative techniques. Statistical Packages for Social Scientists version 22 was used and responses were presented in terms of percentages and frequencies. This was then presented in table format. Spearman Correlation was used to measure the strength of influence of the independent variables on performance of commercial banks. Use of mobile banking partnerships showed the strongest influence on the performance of commercial banks with a coefficient of 0.777. Mobile banking costs had a coefficient of 0.578 while mobile banking security recorded a coefficient of 0.577. Regression model was used to determine the relationship between performance of commercial banks and the independent variables. Regression model gave a constant of 3.657 with mobile banking marketing, mobile banking costs, mobile banking security and mobile banking partnerships having 0568, 0.988, 0.444 and 1.654 coefficients respectively. From the study, it was concluded that mobile banking marketing, mobile banking costs, mobile banking security and mobile banking partnerships influence the performance of commercial banks. The study recommended that the commercial banks must invest more in mobile banking security controls to meet the global market standards to safeguard the customers’ money, harmonize the mobile banking transactional fees levied to make it more affordable to all, acquire more partnerships to enlarge the market share and ensure proper marketing is done to create more awareness of mobile banking products and services.