Factors affecting the use of E-banking services in Kenya: a case of co-operative bank customers in Nairobi
Kabiru, Jane Wanjiku
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Advances in electronic banking technology have created novel ways of handling daily banking affairs, especially via the e-banking channels. Adoption of e-banking especially use of branchless banking system has made it possible for customers to carryout banking transactions through SMS banking, Internet banking, EFTs, Home banking among others. Despite the numerous advantages of e-banking, the service has not been put into full use by most users (Central Bank of Kenya CBK, 2008). Even though most of the customers are informed of the option of E-banking, most of them still prefer going to the banks and being served via the counter yet E-banking is meant to make banking much easier for them. This has led to congestions in the banking halls making banks to employ more staff yet the banks have invested heavily in E- banking services. This study therefore sought to establish the factors that affect the use of E-banking services by bank customers in Kenya. This was achieved through a case study of co-operative bank customers in Nairobi region. The design of the study was descriptive design. The target population included all customers of Co-operative Bank of Kenya located within Nairobi. Questionnaires were used to collect primary data. The data was analyzed with the aid of Statistical Package for Social Sciences (SPSS) whereby descriptive statistics such as frequency distributions and percentages as well as inferential statistics such as ANOV A test and Multiple Linear Regression Analysis were utilized. The findings were presented using frequency tables, bar graphs, pie charts among others. The study established that the bank (Cooperative bank) lacked good branch connections needed for effective access to E-banking services. In addition, the slow usage of E-banking services was attributed to the poor state of infrastructure/interconnectivity in the banks. The study recommends that the bank invest heavily on the improvement of E-banking technology and network reliability. The bank needs to work closely with the Ministry of Information and Technology to improve information and technology infrastructure and interconnectivity. The bank should put more emphasis in enhancing the branch connections to make them reliable hence effective in the access to E-banking services.