Factors Affecting Mobile Banking Adoption: A Case of KCB Bank Kenya

Abstract

The general purpose of this study is to determine the factors affecting mobile banking adoption and usage at Kenya commercial bank Kenya. The research was guided by the following research questions:How does social cultural factors affect mobile banking adoption and usage at KCB bank?How does economic factors affect mobile banking adoption and usage at KCB bank?How does technological factors affect mobile banking adoption and usage at KCB bank? The study utilized a descriptive research design and a quantitative and qualitative research technique was applied to obtain the required information. The target population for this study was1040 account holders at the KCB Sarit Centre branch. From the initial target population of using the sample size formulaat 95% confidence interval a sample size of 138 respondents was obtained. Primary data was collected by administering open and close-ended questionnaire to the respondents. Microsoft excel and the descriptive statistical tool, Statistical Package for Social Sciences (SPSS) was used to help the researcher describe the data and acquire the results through descriptive analysis of means, standard deviations, andInferential statistics through regression analysis the information was displayed by use of tables where necessary. For the analysis of the first objective it was established that most of the respondents strongly agreed that they have the knowledge to use electronic banking services, ability to use electronic banking service and they would embrace electronic banking services their banking needs. For the analysis of the second objective it was established that most respondents strongly agreed that they are able to access to funds any time they want, and they considered M-banking a cost-effective way to provide banking services to the unbanked. For the analysis of the third objective it was established the governments can organize and create good plans to support the development of civilian technology innovation and also do its part to improve the economic growth and development. Most of the respondents affirmed that they would use the electronic banking services for handling banking transactions. For the analysis, it can be concluded that most of the account holders possess the knowledge of how to use electronic banking services, and most of them are willing to embrace electronic banking services for their banking needs. Among the services mostly preferred is payment of utility bills. The study also conclude that the uptake of the service is dependent on the group influences. In regard to the second objective it can be concluded that use of mobile banking has enabled customers to access to funds any time they want, and they also consider it a cost-effective way to provide banking services to the unbanked. It also enables the users to save on transaction cost.The study concludes that governments has a role to play and most of the respondents affirmed that they would use the electronic banking services for handling banking transactions although losses from fraud must be borne by the bank. The study recommended that firstly, banks should strive to educate the account holders on the benefits that they would incur from taking up the services. The bank also need to offer the best services to the current users in order for them to convince their peers, friends and family members to take up the service. Secondly, customers need to be encouraged to use of mobile banking as it is a cost-effective way to provide banking services to the unbanked. The bank needs to ensure that the transaction costs are lower than over the counter cost so as to convince more clients to take up the service. Lastly, the study recommends that the governments needs to do its part to improve the economic growth and development. On issues of security the bank needs to seek ways to minimize fraud, system failures and guaranteeing the users that electronic banking services can handle their banking transactions.The study recommends that for future studies, similar studies be undertaken in other banks so as to be able to compare the findings and make generalized conclusions. Also, there is a need to do a research to establish the impact that mobile adoption has had on the profitability of financial institutions.