| dc.description.abstract | Electronic or online banking is the newest delivery channel to be offered by the retail
banks in many developed countries and there is wide agreement that this channel will
have a significant impact on the market. Kenya has not been left behind in this
development. Although electronic banking is a growing phenomenon, the underlying
factors inhibiting its implementation are not well understood. This paper presents the
challenges inhibiting electronic banking implementation and how banks are responding to
these challenges. The targets of the study were the commercial banks in Kenya. This
study gives a brief overview of the academic literature on the challenges and the
responses that organizations employ in strategy implementation and the extent of
electronic business use. The findings from the Kenya Commercial banks are then
reported.
The paper concludes that there exist various challenges to the implementation of
electronic banking in Kenya Commercial banks. The banks have thus employed strategic
responses to overcome these challenges with some of the responses being more popular
than the rest depending on the Impact they have on the implementation process. Lack of
required infrastructure, resources and specialized skills, commitment from the senior
management team and fear of adopting the system by both the bank employees and
customers were some of the major challenges that were identified while training of bank
employees and customers, employing specialized technology and staff and lowering
electronic banking charges were some of the popular responses that banks have been
using. The entire internal and external environment however needs to be considered
during the implementation of the electronic banking strategy. | en |
