| dc.description.abstract | The need for convenient ways of accessing financial resources beyond the conventional norms has seen the recurrent expansion and modernization of banking patterns. Given the huge demand for finance oriented services, institutions beside the historical banks have joined the fray in an attempt to grab a piece of the perceived cake of opportunity within the banking industry. There is limited understanding of factors influencing consumers’ decision on making online transactions in the banking sector. This study sought to fill the existing research gap by conducting study to establish factors influencing consumers’ decision on making online transactions in the banking sector in Nairobi, Kenya. The objective of the study was to establish how demographic factors, perceived risk factors and customer perceptions factors influence consumers’ decision on making online transactions in the banking sector in Nairobi, Kenya. The study adopted a descriptive research design. The target population of the study was 3,000 customers, who do online banking. The sample size of the study was 352 respondents, including the bank’s management within the ICT division, selected through the simple random sampling method. The study used primary and secondary data. The primary data was collection by the use of questionnaires. Secondary data was collected from annual bank reports, strategic planning, internet banking journals and magazines. The data collected from the questionnaires were analyzed by both qualitative and quantitative methods of data analysis. Descriptive analysis by use of frequency and percentage were used to examine the profile of the respondents. Independent sample T-test and Chi square test of independence at 95% level of confidence were used in this study. The study found a significant positive relationship between demographic factors, perceived risk factors, and customer perceived factors and consumers’ decision on making online transactions in the banking sector. The study concludes that demopraphic factors are positively related to consumers’ decision on making online transactions in the banking sector; perceived risk are positively related to consumers’ decision on making online transactions in the banking sector; customers perceived factors are positively related to consumers’ decision on making online transactions in the banking sector; social factors are positively related to consumers’ decision on making online transactions in the banking sector. The study recommends that the banking institutions establish online services to serve every person in the community. Internet shopping sites should keep their promises and commitments and also customers’ interests in mind since it greatly influences their choice of online shopping. More online shopping platforms should be established to increase competition and also improve on the offerings. Online shops should be user friendly and very easy to navigate. The study recommends that other studies should be conducted on factors influencing consumers’ decision on making online transactions in non-bank institutions. | en_US |
