Virtual Banking Adoption by Saccos in the Face of Covid 19 Pandemic in Kenya: a Case Study of Nairobi County
Abstract
The outbreak of COVID-19 pandemic saw overwhelming effects on consumers’ buying
behavior globally, with economic productive activities shifting from offline to online. As a
result, many business leaders were left with no option other than adopt the use of Information
Technology to ensure business operations continuity, enhance efficiency as well as
sustainability. In Kenya, unlike most commercial banks, Saccos have largely been left behind
in embracing new banking technologies such as agency banking, internet banking, or mobile
banking. Therefore, the use of paperwork, physical and in-person meetings to conduct
business has remained widespread amongst many Saccos in the country, and the onset of
COVID-19 has forced Saccos to shift to virtual banking as an effective alternative toward
addressing their customers’ needs while ensuring safety. This study aimed at examining the
adoption of Mobile Banking models and Virtual Banking technologies and innovations to
establish the factors influencing their adoption by potential users. The study also explores the
adoption of Virtual banking amongst Saccos in Kenya, investigating the electronic delivery
channels used, and their suitability. The study objectives were accomplished through an
exploratory and descriptive approach and the data used collected from SACCO-based
respondents who included Sacco ICT officers, managers, and members using questionnaires.
Data analysis was done using the Statistical Package for Social Sciences (SPSS). The study
established that most Saccos were found to favor the Joint venture model and the non-bankdriven
model as Mobile Banking models and technologies to realize virtual banking
adoption. The extent of adoption of virtual banking amongst Sacco clientele was found to be
influenced by social, economic, and technological factors. The study did not direct to a
specific virtual-banking system, so for a specific e-banking system, it should be better to carry
out a questionnaire survey or interview sessions to analyze factors that influence the
individual adoption of e-banking services. The study recommends that Saccos should consider
sharing information and technologies across various networks as this is likely to lead to much
more gains in adopting technologies that would improve their sustainability as while fostering
better customer experience.
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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