| dc.description.abstract | The third-party logistics market is growing all over the world, with an increasing number of
organizations opting to outsource elements of their supply chain to logistics specialists so they
can concentrate on their core business activities. Provision of ATM services is considered a non
core issue, just like the provision of cleaning services. In March 2005 the PesaPoint concept was
birthed upon the realization that there was an opportunity within the market, and far too few
Kenyans enjoyed ready access to their cash through ATM services either because their honks did
not offer ATM's or they were only placed in a few locations. Only 24 financial institutions of the
53 in the market have signed up to the network. One way of determining why only a few
financial institutions have joined the PesaPoint network was through a study of perceptions of
decision makers in the concerned banks.
The study was modeled on a descriptive survey design, the aim being to determine the perception
of management in financial institutions. A sample size of 53 commercial banks, 11 nonbank
financial institutions, 2 microfinance institutions and 4 building societies was used. Primary data
was collected using a semi structured questionnaire. One respondent from each institution who is
in the position of Marketing manager or Information Technology manager or its equivalent was
used to collect the data. Both the E-mail system and "drop and pick later" method were used to
collect the data. Data collected was analyzed using descriptive statistics. The study's response
rate was 88%.
The study found that though there was a need for the services offered by PesaPoint in the market,
and that the perceptions held by financial institutions are generally positive. There were however
a few bottlenecks in the relationship between PesaPoint and the various financial institutions.
The study faced different limitations. During the collection of literature, the author found that
there was a lack of relevant local literature on the subject. The origins of information inevitably
come from other countries, like the United States of America and Europe. This may not
accurately describe the phenomenon and situation in Kenya, especially with the cultural
differences between Kenya and the first world. Collecting data from financial institutions proved
to be very difficult since most information in the financial institutions is regarded as confidential.
Managers in financial institutions are also very busy persons who have little time to respond to
questionnaires.
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From the findings of this study, it is recommended that further studies be conducted on
perception of customers and other end users (and not just management staff in financial
institutions), on the adoption of third party ATM services offered by PesaPoint. Comparisons can
then be made between individual customers and corporate customers in terms of the factors
influencing their adoption decisions, the criteria for selecting ATM services providers, and the
types of products and services perceived to be useful. | en |
