Analysis of the challenges facing internet banking in Kenya ( a case of commercial bank of Africa Ltd)
Gaitungu, David N.
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This project surveyed the Internet banking as a relatively new product that has been developed by commercial banks in Kenya. Businesses are being revolutionalized every day as a result of the influences of the Internet. In the world of banking, the development in information technology has enormous effect on development of more flexible payments method, more user friendly banking services resulting to a more efficient banking system. Despite the fact that internet banking make the transaction faster and more convenient, several commercial banks in Kenya are yet to adopt this new banking product. The banks that have adopted the product have been faced with various obstacles necessitating a need for a research project to ascertain the reasons for this phenomenal and determine how they can overcome them to facilitate a breakthrough. The research design was descriptive based on a case study of Commercial Bank of Africa Ltd. In order to gain a better understanding on these issues, the data was collected from the bank customers and from bank employees using questioners. Data analysis was done in accordance with the research questions. The study was representative because the sample was picked from 27.8% of the Internet banking customers as at the end of 31 st December 2008.The total number of bank customers and the employees as at December 31 st 2008 was 3,222. The study shows that Internet banking is fraught with teething problems ranging from security concerns by the users, lack of adequate legal framework, poor marketing strategies and issues regarding the connectivity of CBA internet banking site. The study concludes that banks need to promote Internet banking by offering more incentives to customers, enhance the security systems to ensure adequate security for their customers in an ever changing world of technology and ensure adequate training of the employees.