Customer perceptions on the adoption of electronic banking in Kenya

Abstract

Approximately half of the customers that have tried electronic banking services in Kenya will not become active users. Given the almost comprehensive adoption of electronic banking in the developed economies, the reasons behind the slow adoption of e-banking channels in Kenya are important research questions. In the banking world, the growth of information technology has a massive effect on the development of more flexible payment methods and more-user friendly banking services. The purpose of this study was to investigate the factors influencing the adoption of electronic banking among users in Kenya. The study was guided by the following research questions: How do privacy perceptions affect the adoption of ebanking in Kenya? How do convenience perceptions affect the adoption of e-banking in Kenya? How do security perceptions affect the adoption of e-banking in Kenya? This research adopted a descriptive research design. A random sample of 120 banking customers from a stratified sample covering all genders and ages from 19 years and above was considered. The researcher administered a questionnaire as the primary data collection instrument using Survey Monkey, email, and pick and drop approaches. The researcher coded and organized the data into different categories. The administered questionnaire had a response rate of 81% which was considered representative. Data was analyzed using the Statistical Package for Social Sciences (SPSS). The findings relating to the security of electronic banking show that customers are uncertain whether to embrace the good qualities of internet banking or resist the dangers presented by security loopholes. The findings on convenience show that users perceive electronic banking as a cheaper and more efficient banking channel, as opposed to the traditional brick and mortar setting. Finally, the findings on privacy show that a majority of electronic banking users believe that banks ensure confidentiality. In the same measure, a majority of the respondents did not believe that electronic banking contributes to privacy violations.