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Online Banking and Its Effect on Customers Saving Behavior: A Case of Equity Bank Kenya

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dc.contributor.author Kimani, Anne N.
dc.date.accessioned 2018-10-25T08:30:33Z
dc.date.available 2018-10-25T08:30:33Z
dc.date.issued 2018
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4063
dc.description A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirements for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract The purpose of this study was to analyze online banking and its effect on saving behavior of customers. The study was guided by three research questions which sought to establish what the effect of internet accessibility, website security and online banking transaction costs on customers saving behavior. This study adopted a descriptive research design and the main idea behind using this type of research design was to better define the opinions, attitudes, and behavior held by online users in regards to risk management in electronic banking. The target population of the study was 2000 customers from 30 Equity bank branches within Nairobi region and using a formula a sample size of 138 respondents was attained although only 110 responded resulting into 80% response rate. Primary data was collected for this study by administering questionnaires. Quantitative data was analyzed by the use of descriptive statistics such as mean, standard deviation, frequency and percentages. To establish the relationship, both regression analysis and correlation analyses was used to establish the impact of online banking on saving behavior of customers. The research analyzed relationship between consumer saving behavior and internet accessibility. The results showed that (R2= 0.603, p value< 0.05), hence 60.3% of the variation in consumer saving behavior was explained by the variations in internet accessibility. The regression equation established that taking internet accessibility into account and other factors held constant consumer saving behavior reduces by 0.799 and both variables were significant. The research analyzed relationship between consumer saving behavior and website security. The results showed that (R2=, 0.061, p value < 0.05), hence 61.1% of the variation in consumer saving behavior was explained by the variations in website security. The regression equation established that taking web security into account and other factors held constant consumer saving behavior improved by 1.216 units and both variables were significant. The research analyzed relationship between the dependent variable (consumer saving behavior) against cost of internet. The results showed that the R2 value was 0.520 hence 52% of the variation in consumer saving behavior was explained by the variations in cost of internet. The regression equation illustrated that taking internet cost into account and other factors held constant consumer saving behavior improved by 1.745 units and both variables were significant. The study concluded that respondents acknowledge that internet banking is easy to use and this has enabled customers to access accounts and make payments. In addition the quality of information provided when login into account is understood by all. Also the banks have measures in place such as providing authorization tools to ensure that transactions submitted online are secure. Generally, as per the findings transactions done online are quite cheap as compared to over the counter transactions due to the affordable online annual fee. Most customer admit to paying for monthly or daily internet although the cost is considered low in comparison with the value received when handling either huge or small units for transactions. The study therefore recommended that the bank should take up the role to convince more customers to take up online banking. In addition, most customers have concern about security in relation to internet banking. It is therefore important for the institution to communicate to the customer about the rare system down times and the anticipated value for internet banking. Finally, the bank needs to convince the clients about the affordable online banking annual fee. There is also a need to sensitize the customers on the charges involved in undertaking internet banking. The data used in this study are from Equity bank customers and the assumption is that its online platforms operates similarly to others, so further research could be done on other banks and financial institution offering online banking in the whole industry. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Online Banking en_US
dc.subject Customers Saving Behavior en_US
dc.subject Equity Bank Kenya en_US
dc.title Online Banking and Its Effect on Customers Saving Behavior: A Case of Equity Bank Kenya en_US
dc.type Thesis en_US


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