Information technology and competitiveness of Commercial Banks in Kenya
Abstract
This main objective of the study is to analyze the adoption of information technology and
competitiveness of commercial banks in Kenya. To achieve the main objective the study
established the extent of adoption of information technology by commercial banks in
Kenya, determine whether the extent of adoption of information technology by
commercial banks in Kenya is related to bank competitiveness and determine the
challenges faced in adoption of information technology by commercial banks in Kenya.
The study adopted a descriptive research design. The population of study consisted of all
the registered commercial banks in Kenya. Purposive sampling in which chief
Information Communication Technology (ICT) managers at the headquarters of each of
the commercial banks in Kenya was applied in the study. Data was collected using
questionnaires and analysis was done using Statistical Package for Social Sciences
(SPSS) for quantitative data while content analysis was used for qualitative data.
Descriptive statistics (frequencies, mean and standard deviations) and multiple regression
models was generated using SPSS and the findings were presented using tables and
charts. From the findings, the study found that commercial bank’s overall performance
was influenced by information technology adoption in specifically marketing, credit,
finance, Information Communication Technology departments, customer relations and
human resource departments. The study revealed that adoption Information Technology
enhanced competitiveness as it enabled the bank to practices had retail-banking,
automated banking and other financial services, and retain customers through
strengthening customer relationships. The study recommends that commercial banks
should do a research for developing information technology and guidance to promote its
positive competitive advantage.
Publisher
University of Nairobi School of Business