Effect of information technology on hanks customer satisfaction in cooperative bank of Kenya
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Date
2013-02-19
Authors
Kuteli, Janet Namvenya
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Abstract
In the current climate, competition in the banking industry is intense, with new financial
service providers emerging all the time. Quality of service is seen more than ever as a key
differentiator in the marketplace. One question relates to whether automated, telephone and
Internet banking represent positive change and are delivering enhanced service quality. Whilst
technology can save time and money and eliminate errors, thereby addressing certain issues
associated with changing cultural and social trends, it can also minimize direct customer
interaction and any associated service value to be gained (Bitner,2001). The main objective of
this study was to investigate the effects of information communication technology on
customer experience of customers banking with commercial banks in Kenya. The case study
was done on Co-operative Bank of Kenya. The specific objectives were to determine the level
of ATM use and adoption-by banks and how this affects customer experience, to analyze the
level of usage of Mobile banking by banks customers and how M-banking affects the
customers experience and to evaluate whether adoption of Internet banking by banks has led
to enhanced customer experience. The research took the form of a survey. The population of
interest was staff and customers of co-operative bank. The target population consisted of
1,800,000 customers, based in Nairobi. The study used stratified random sampling. The study
selected a sample of 100 customers using stratified random sampling technique. Both
Secondary and primary data was collected for this study. The data was presented in form of
tables, and graphs. Prior 'to this, the data was coded, checked to ascertain accuracy and
completeness of recordings and responses. After coding, the data was entered in a database in
excel spreadsheets. The study found out that lCT has a positive effect on customer satisfaction
of the three factors tested, telephone banking has no significant effect while, and mobile
banking, internet banking and ATM all have a significant effect on customer satisfaction. The
findings are consistent with those previous studies. The study concludes that there is a
significant relationship between information technology use in banks and banks customer
satisfaction. The most influential JCT channel that has the most positive influence on
customer satisfaction is the ATM widi._ M-banking yet to take root; telephone banking and Ebanking
were the least influential IC1'\channels affecting customer satisfaction. The study
recommends that banks should incorporate lCT into their strategic plans for effective
performance in their payment and delivery systems. This calls for proper analysis to
determine the type, nature and extent of lCT products required for effectiveness and
efficiency. It is imperative for bank management to intensify investment in lCT products to
facilitate speed, convenience, and accurate services. Since the results of this study are based
on consumers' perceptions only, future research should investigate the congruence between
consumers' and service providers' perceptions. This will help the industry to better
understand whether both consumers and banks have the same perceptions regarding issues
relevant to customer satisfaction and retention
Description
Accounting and Finance