| dc.description.abstract | In the wake of the 21st century, banks have rapidly embraced the use of modern technology in
the provision of services to their growing clientele. This is in line with remaining relevant to the
dynamics of the economic environment coupled with competition from other institutions. This
notwithstanding, the uptake of these services has not been to the desired levels as evidenced by
the long queues in banking halls and a rising number of branch networks in the country and
beyond. The purpose of this study was to investigate the factors that influence the adoption of
digital banking services in Kenya. The study was guided by 4 objectives namely: To establish
the influence of awareness, customer trust, perceived usefulness and the perceived ease of use
of technology on adoption of digital banking services. The study targeted 282,877customers of
Thika Branches of four Commercial Banks namely Co-operative, Equity, Family and KCB. The
four banks were chosen because they that have the highest number of client base and market
presence in the town. Stratified random sampling technique was used to select a sample size of
384 customers. Information was collected using a Bank Customers Questionnaire. Data was
analysed using SPSS program version 21. Data was presented using frequency tables. Student‘s
t-test was used to establish if there are any significant differences between genders. ANOVA
was used to establish if there are any significant difference in the customers‘ responses toward
digital banking services and age, status of employment, banks and highest level of education.
Pearson product correlation coefficient was used to establish the relationship between perceived
awareness, trust, usefulness and ease of use on adoption of DBS. A model for the prediction of
adoption of DBS using the four variables was developed using a regression analysis. The study
found out that majority of the customers were male. It also established that majority of the
customers 205 (60.5%) preferred mobile banking, followed by agency banking 99 (29.2%) and
those who preferred internet banking were 36 (10.6%). The study established that there was a
significant difference in the perceived awareness of digital banking services by age (F = 5,
9.934 at .The respondents aged 28-37 years were more aware about digital banking
services than the rest. The study found out that awareness, perceived usefulness and perceived
ease of use positively influenced adoption of DBS while lack of trust negatively influenced the
adoption of DBS. Overall score ( = 4.78) showed that the respondents agreed that the digital
banking services were perceived as useful. The respondents agreed they used the Digital
Banking Services due to its perceived ease of use ( = 4.78). The value of R2=0.23 obtained
showed that awareness(x1), trust(x2) perceived usefulness(x3) and ease of use (x4) accounted for
23% of the total variation of adoption of digital services(y). The regression equation obtained
was y = 9.179 + -.183x1+ 0.028x2+ 0.014x3 +.0215x4. The study recommends aggressive
advertisement to increase awareness of digital banking services as it had the largest contribution
among the four factors. The study recommends a further study to find out the influence of
culture and personal traits on adoption of digital banking services | en_US |
