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Investigation into the Risks Facing Mobile Banking: A Case of Commercial Banks in Kenya

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dc.contributor.author Karanja, John Njau
dc.date.accessioned 2017-05-31T09:01:35Z
dc.date.available 2017-05-31T09:01:35Z
dc.date.issued 2017
dc.identifier.uri http://erepo.usiu.ac.ke/11732/3209
dc.description Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Master of Business Administration (MBA) SPRING en_US
dc.description.abstract The objective of the study was to investigate the risks facing mobile banking among the commercial banks in Kenya. The study seeks to answer three research questions. What risks arise for commercial banks in Kenya as a result of mobile banking? What measures are adopted by commercial banks in Kenya to protect against future mobile banking risks? What strategies do Kenyan banks employ to mitigate mobile banking risks? The current study adopted a descriptive research design. The design was appropriate for the current study since the study sought to express the situation exactly the way it is in the industry. The current study population consisted of 41 informational technology managers in each of the 41 commercial banks registered in Kenya as at 30th June 2016. However, only 37 response resulting into a 90% response rate. With regard to the first objective the study sought to determine risks arising as a result of malware and majority of the respondents agreed that there were no reported risks arising from malware virus attack on the mobile banking platform. In addition, majority of the respondents agreed that to some little extent of system hacking on radical programmers who steal mobile banking PINs and codes, hackers who secretly read the organization emails. Other issue was unauthorized access by former colleagues and unauthorized persons gaining access to mobile banking systems when the users carelessly leaves their computers it logged on and theft in order to impersonate the customer for accessing mobile banking services. The second objective established that challenges arising because of security and to some little extent security on third party intrusion, loss of privacy. Majority of the respondents agreed that to some moderate extent availability of alternative, mobile phone access and cost of service is a challenge exhibited. Respondents also agreed that there is limited social factors on customers trust, and limited extent of embracing new technology and awareness. The third objective established that there is a great use of one time SMS verification codes together with the normal PIN. Moreover, respondents agreed that there is little extent use of one time phone call verification codes together with the normal PIN, use of random numbers together with the normal PIN and use of card readers codes together with the normal PIN. To analyse level of encryption by commercial banks majority of the respondents agreed that a great extent there is use of data encryption to achieve a high level of security. The study concluded that commercial banks have maintained their technology thus ensuring risks related to malware are continuously avoided. There are however risks in regard to system hacking by radical programmers as well as unauthorized access in banks. In addition, the continuous competition in the sector has also contributed to availability of alternative services, mobile phone access and related cost of service. There is a continued use of one time SMS verification codes together with the normal PIN. Moreover, respondents also enjoy one time phone call verification codes together with the normal PIN, use of random numbers together with the normal PIN and use of card readers codes together with the normal PIN. The banks also use data encryption to achieve a high level of security and use of data encryption also help avoid misuse of data. The study recommended that the commercial banks need to maintain their technology to ensure the related malware risks are continuously avoided. There also a need to beef up the set up ensure cases of system hacking by radical programmers. The commercial banks need to analyze security and set up stringent measures to curb cases of third party intrusion, and loss of privacy. In addition, there is a need to inform the customers of the benefits associated with use of mobile banking service. It was also concluded that Banks need to enhance their use of one time SMS verification codes together with the normal PIN. The firms also need to continuously adopt PIN related features and use of data encryption to achieve a high level of security and avoid misuse of data. There is a need to undertake further studies to establish the effects of the risks established on the profitability of commercial banks in Kenya. en_US
dc.publisher United States International University - Africa en_US
dc.subject Mobile Banking en_US
dc.subject Risks en_US
dc.subject Commercial Banks in Kenya en_US
dc.title Investigation into the Risks Facing Mobile Banking: A Case of Commercial Banks in Kenya en_US
dc.type Thesis en_US


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