Effect of Cyber Securities Strategies on Implementation of Online Banking: a Survey of Commercial Banks in Kenya

Abstract

The advancement in technology has led to a swift in the way banking sector operates. Clients no longer need to visit banking hall to transact but instead conduct their transaction at the comfort of their homes using online banking services. On the other hand, these developments have been accompanied by increase in cybercrime committed through these channels, hence the need to conduct a study about the effects of cyber security strategies on online banking implementation. A cross sectional survey of 41 Banks in Kenya was done. The research study was motivated by the need to establish the cyber threats facing the commercial banks in Kenya, countermeasures being adopted and how effective these strategies are in managing the cyber threats faced by commercial bank in Kenya. Banking sector in Kenya are under intense pressure to offer their customers quality products and convenience. In order to achieve this, they have adopted new technologies such as online banking to meet increasing customers need and improve on convenience. With the adoption of these new innovations commercial banks have become more vulnerable to cyber-attacks resulting to huge losses of their capitals through online theft and systems hacking. This increasing trend has triggered the need to investigate the causes and the strategies than can be used to curb these types of online fraud. The aim of this study was to establish the effects created by cyber security strategies on online banking implementation within Commercial Banks in Kenya. A cross sectional survey targeting ICT officers and staffs managing online transactions was carried out in 41 commercial banks in Kenya selected randomly from a population of 41 Commercial Banks in Kenya. Out to 41 commercial banks, we managed to get feedback from 31 respondents who managed to completed survey questionnaire giving a response rate of 75.6%. The main instrument for the survey was a questionnaire. The form data analysis used was descriptive statistics. The research study conducted to assess the effect of cybercrime security strategies in commercial banks in Kenya. To achieve this several variables were analyzed such as risk management systems, ICT infrastructures and level of employee awareness and competence handle cybercrime. Others aspects analyzed included regulation in terms of bylaws, policies, staff training among others. IT department was identified as the key areas data collection. Most of the information gathered directly touched on the policies, controls and security strategies employed by ICT departments. The study proposed several security areas that commercial banks need to improve on. These include access permission control mechanisms. Commercial banks should only give access once proper authentication has been done. Secondly, commercial banks need to be on the forefront in conducting security training within internals staffs and external client as well. Finally the study recommends that keen attentions should be taken when handling social engineering issue since threat is the areas that most hacker finds it easy access into the organizations systems.