Assessing the uptake of Mobile Banking as perceived by employees of Commercial Banks in Kenya

Abstract

Studies have indicated need for Commercial Banks to move from traditional banking norm of brink and motor and embrace technology to improve quality of customer’s service, improve customer satisfaction, reduce operational cost and offer customers alternative channels to access banking services through alternative banking channels like Online Banking, Mobile Banking, Agency Banking and ATMs. The objective of the study is to analyse the value of Mobile Banking adoption or lack while examining the challenges faced in Mobile Banking adoption- as well as examine ways to increase mobile banking uptake among commercial banks in Kenya as perceived by Banking Employees. The study adopted descriptive research design. The target population were all the 43 commercial banks in Kenya and the sample size was 60 respondents. Quantitative primary and secondary data was analysed using descriptive statistics. The growth in number of customer deposit accounts and value of customer deposit was attributed to increased deposit mobilization by banks as they expanded their outreach and leveraging on mobile banking platforms to mobilise lower cost deposits. Mobile Banking has enabled commercial banks in Kenya to experience growth, competitive positioning and assured their survival. Kenya has earned its place of pride in the global technological innovation sphere through the revolutionary mobile banking platforms that has exponential capability to transform the mode of banking depending on the extent of its uptake by respective banks. The increased financial inclusion through mobile banking has not only reduced banks operational costs hence cost cutting but also increased their reach, competitiveness and financial performance against the background of dwindling revenues as a result of regulation, competition, inflation among other market forces. The cost of a technology, mobile banking security, human capability, technological, infrastructural related challenges impede mobile banking uptake among the banks. vi

Based on the findings, the study recommends that the management of the Commercial Bank should rethink their Mobile Banking model and align it with customer’s evolving banking needs particularly making it attractive to the financially excluded Kenyan population. They should also allocate adequate financial resources towards Mobile Banking uptake and have a highly robust and Secured Mobile Platforms to encourage uptake There was also the need to undertake a market research to understand the customer needs and to inform their customers on their Mobile Banking product design with key focus to ease of use, competitive cost and improved quality of service.