Factors Influencing Customers Utilization Of Automated Processes In Commercial Banks In Kenya: A Case Of Equity Bank

Abstract

The essential role of technology has long been proven in the history of consumer banking, not merely as a facilitator for procedures and improving performance, but also as a deciding factor determining the shape of the industry. While the use of new technology has hence been proven to provide extensive potential for enhancing outreach in Africa, it is not going to be sufficient if most of the populace does not embrace the technologies being offered. The objective of this particular research was to examine the factors influencing customers’ utilization of automated processes in commercial banks in Kenya. The outcomes of this research may be critical in formulating a number of guidelines and educational campaigns that will boost the actual uptake of automated banking solutions. In order to achieve its objectives, the research tends to make use of the Technology Acceptance Model in order to examine the actual impact and effect of Perceived Ease of Use, Perceived Usefulness, Trust and Risk on the Utilization of Automation Systems. The research applied the descriptive survey design which provided qualitative and quantitative data suitable for analyzing the factors influencing customers’ utilization of automated processes in the Kikuyu Branch of Equity Bank, where the total population of the active account holders is 75,000. The Krejcie & Morgan table was basically put to use to figure out the sample size with regard to the research, providing a sample size of 382. The sample was basically drawn by way of simple random sampling involving the clients visiting the banking hall. The research adopted a questionnaire as the tool for data collection. To establish content validity regarding the tool, a pilot study ended up being done. In this particular study, test and re-test method was basically used during piloting. Qualitative data was analysed by way of organizing responses in themes as per the objectives of the research. Quantitative data ended up being analysed by way of descriptive statistics making use of the statistical package for social sciences (SPSS). The research discovered that participants who had the notion that internet banking seemed to be easy to use were definitely more probable to embrace this kind of banking automated system. Also, increased perceptions that automated systems were useful led to increased adoption rates. Increased trust levels in the capabilities of automated banking boosted consumer uptake of these banking services. In addition, lower perceived risk was seen to bolster the adoption of automated baking services. To make customers perceive automated banking as being easy to use – a factor that has been proven in this study to be of very significant impact on internet banking adoption – it is recommended that banking institutions need to design customer-centric apps with easy to understand interfaces and follow up with extensive customer education and technical support. Moreover, the functionality of the apps needs to be extensive and the banks need to not only rely on user feedback about the functions that need to be baked in at the design stage, but also innovate new ways to serve the customer so as to encourage increased adoption. All this needs to be done without compromising the reliability of the apps since eroded trust is clearly seen to deter customer adoption of automated services. Seeing that the risk to the customers also has a profound effect in the participation of the utilization of automated processes, it is important for the stakeholders and the government to formulate laws and policies that mitigate these risks.