dc.description.abstract | Commercial banks play an important role of facilitating the running of the economy by
accepting deposits from customers who have excess money and lending it to the
customers with a deficit. The banking Industry in Kenya has become very competitive
due to many players, and also due to liberalization of economy and technological
advancements. Banks have responded to these challenges by introducing innovative
product and services. It is important for banks to understand how customers perceive
these services and products because perception a determinant of buyer choice. The
purpose of this study was therefore to determine the perception of personal banking
customers on the telephone banking services provided by commercial banks in Nairobi.
A descriptive survey was conducted. The population of study included all personal
banking customers in Nairobi. There are about 3 million personal banking customers in
Nairobi. Out of the 43 commercial banks in Kenya, 10 of them were conveniently
selected. From these, proportionate and stratified sampling method was used to select 500
respondents. Primary data was collected using a semi-structured questionnaire. A trained
research assistant administered questionnaires to respondents.
Out of the 500 questionnaires administered 400 (80%) responded by completing the
questionnaires. Data was analyzed using descriptive. Percentages and frequencies were
used to analyze data in Part I. Data in Part II was analyzed using mean and standard
deviation statistics such as percentages, frequencies, and mean. From the findings it is
clear that many customers find telephone banking services as a convenient, time saving,
reliable, flexible and a secure way of doing banking transactions. However the low
response on some of the telephone banking services like giving instructions on fixed
deposit account, stop payment of cheques, foreign exchange rate enquiry and visa debit
enquiry is an indication that many personal banking customers are not aware of all the
telephone banking services provided by banks. It was recommended that banks create
awareness to customers on telephone banking and more research to be done on telephone
banking covering all commercial banks and to cover corporate customers as well. It was
also recommended that banks take time to understand the perceptions their customers
have on the services that they offer so as to develop products that suit customers’ needs.
The researcher recommends a further research covering all commercial banks in Kenya
and to be expanded to cover the perception of corporate customers on Telephone banking
services provided by commercial banks in Kenya. | |