Factors influencing adoption of online trade services among corporate customers: case study of a tier ii international bank in Kenya

Abstract

The study focused on factors that influence adoption of online trade services among corporate customers of a tier II international bank in Kenya. It sought to determine the association between predictor variables (perceived usefulness, perceived ease of use, self-efficacy, awareness, and volume of transactions) and user acceptance of online trade services among corporate customers of a tier II International bank in Kenya. The study used the Technology Acceptance Model theoretical framework modified to include customer perception on volume of transactions as a factor influencing adoption of online trade services. The study used a structured questionnaire to collect primary data, which was analyzed using the IBM SPSS tool. Normality tests were conducted on each of the factors on the modified Technology Acceptance Model to determine whether the data was obtained from a normal distribution. Correlation tests were done to find out the association between the predictor variables and dependent variable. It was found out that there was positive correlation between each of the independent variables (perceived usefulness, perceived ease of use, self-efficacy, awareness, and volume of transactions) and dependent variable (adoption of online trade services among corporate customers of a tier II international bank based in Kenya). There was very low multicollinearity between the independent variables meaning predictor variables were independent of each other. The study found out that younger users were more aware and self-efficient with online banking system, hence more likely to adopt online trade systems than their older counterparts. Perceived usefulness, perceived ease of use and volume of transactions were found to have a significant relationship with user acceptance of online trade services by corporate customers of the international bank based in Kenya. This study recommended that the tier II bank based in Kenya should focus on improving usefulness and ease of use of their online trade services while cross-selling the online trade services to customers with high number of transactions in order to drive utilization. Higher uptake of digital channels will enable a corporate customer in Kenya reduce the cost of operation, turnaround time, improve operational efficiency and create a proper audit trail of the transaction.