Digital Technology and Competitive Advantage of Commercial Banks in Kenya
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Date
2019Author
Omari, Phellisters K
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Digital Technology has been considered as the defining factor in modern banking. It has
enabled banks to provide quality services and products to the consumer eventually
improving competitiveness. Technology is a form of change that is geared to allow the
institutions to adapt to changes. Therefore, the role of digital technology is essential in the
distribution channels and competitiveness of commercial banks. The objective of the study
intended to determine the effect of digital technology on the competitive advantage of
Kenyan banks. The study used a descriptive cross-sectional survey. The population of
study was all the registered 43 commercial Banks in Kenya. Open ended questionnaire
was used to gather the primary data from commercial banks. Collected questionnaires were
edited and cleaned for completeness in preparation for coding. They were coded and keyed
into the SPSS version 22, for analysis. Descriptive statistics such as means, standard
deviation and frequency distribution were used to analyze the data while percentages and
frequency tables were used for data presentation. The study found that the use of ATMs in
service delivery influences the competitive advantage of the bank. The use of ATM has
helped the bank in simplifying customer banking experience and lowering the costs of
transactions for example the electronic withdrawal of cash across the ATM has resulted
into reduction of costs. The study found that that the use of mobile banking in service
delivery influences the competitive advantage of the bank. The study also found that the
use of mobile banking has managed to enhance convenience and flexibility in offering
financial services to its customers. The study found that the use of internet banking in
service delivery influences the competitive advantage of the bank. The study concluded
mobile banking provides increase convenience, expand access and significantly save time
for the customers. The main limitation of the study was in the inability to include other
financial institutions as the case study focused on Kenya commercial banks only. The study
would have covered more institutions across all sectors so as to provide a broader based
analysis. The study recommends that a further study should also be carried out to determine
the influence of ICT in achieving competitive advantage at other sectors such as
manufacturing companies. A further study should also be carried out to determine the
relationship between information technology strategies and competitiveness in banking
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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