Effect of Mobile Banking on Customer Satisfaction in Kcb Bank Limited, Kenya

Abstract

Mobile Banking has become one of the most popular methods of banking that has experienced tremendous growth over the last couple of years. Technological advances have reshaped the size and nature of the financial industry, allowing it to extend beyond the traditional, brick-and-mortar concept of borrowing and saving. Internet banking, digital wireless banking and mobile banking are an extension of the technological progression that is now characteristic of the banking sector. The study used a descriptive survey approach methodology of one hundred and eighty customers of KCB Bank Limited Kenya spread across six geographical areas that the bank is divided into to understand the effect of mobile banking on customer’s satisfaction. The study has used primary data collected from the one hundred and eighty customers selected randomly within the KCB branches. Statistical analysis was done with the aid of statistical Package of Social Sciences (SPSS) software. The findings revealed that mobile banking had statistically significant influence on the level of satisfaction amongst customers of KCB Bank Limited, Kenya. Data from individual customers indicate that 31.6% of the respondents aged between 26-34 years are actively using mobile banking and 23.9% of the respondents are extremely dissatisfied, 13.7% are somewhat dissatisfied, 9.4% neither satisfied nor dissatisfied, 23.1 somewhat satisfied and 29.9% extremely satisfied. Factors such as age, customer experience, product experience, and security of application are significant determinants of overall satisfaction with mobile banking. However, gender has no impact in determining the overall satisfaction. Based on the findings of the study, it can be concluded that usage of mobile banking has assisted greatly in improving various aspects of customer service delivery such as providing timeless banking to the customers, reduction of queues and reduction of time to access banking services. It is therefore recommended to the management of KCB Bank Limited Kenya that they need to explore ways of making mobile banking services more affordable and less costly than the conventional banking service.