| dc.description.abstract | Information
Communication
Technology
and the Internet in particular can create a
competitive advantage and improve performance and competitiveness.
The
Kenyan
banking sector, over the years, has experienced
stiff competition due to the homogeneity
of products and services offered by the banks. As a result, banks have been forced
to
adopt and apply ICT towards enhancing financial service delivery aimed at satisfying
customer needs and ensuring they retain their
market share. Kenya Commercial Bank
Group Limited has adopted ICT to a great extent focusing on mobile banking, internet
banking and agency banking. The bank has developed new pre-
paid debit card KCB
MeCash to leverage on its huge investment in modern Information Technology
infrastructure to enhance cashless payment solutions.The objective of the study was
to
determine
how usage of ICT influences
competitive advantage in KCB Group Limited.
The research design for this study
was
a
case study since the unit
of analysis is one
organization.
Primary
data
was
collected using interview guide.
Content analysis
was
used to analyze collected qualitative data.
The study concluded that
ATM
is
a source
of
competitive advantage at
KCB
Group
Limited as it helps the
bank
in replacing the
heavy
overhead bank branches, lowering cost
of operation and lowering
delivery
cost of
financial
services to customers and increasing
non funded incomes. It also
leads to an
increase in customer base and
customer deposits which
in turn results into
earning of
more interest
and increases
interest margin
thereby influencing
the
achievement of
competitive advantage in the bank.
The study concluded that adoption of
telephone
banking at
KCB Group Limited
influence achieving of competitive advantage by
improving convenience and expanding access to financial services. Telephone banking
also
ensures significant time saving, increases bank income level, and increases
bank
telephone deposits, increases
remote bank branches and also leads
to anincrease in bank
customer base
.
ICT adoption has assisted
KCB Group Limited
in delivering differentiated
financial products and services such as mo
bile phone banking dubbed KCB Mobi and
KCB Bankika. The bank has also ensured
enhancedifferentiation of products through development of
new financial products for different groups of customers in the markets.
The study recommends
that commercial
banks should
adopt ICT such as
ATMs as it
contributes to achieving of competitive advantage through replacing
of
the
heavy overhead
bank branches, lowering of cost
of operation, lowering cost of delivering
financial
services to customers ICT adoption has also resulted into an increase
of non-
funded income, lower co
st of financial delivery,
increase in bank sales, increase in
customer base and
customer deposits. The benefits realized through ICT adoption has led
to the generation of more
profits, increased
interest margins
and
thereby influencing
achievement of competitive advantage in the bank. | en_US |
