Influence of customer perceptions on the adoption of mobile banking service: a case of Commercial bank of Africa Nairobi county, Kenya.
Abstract
Mobile phones have emerged as a tool of convenience in today’s society. Banks have also noted
this and have in light of this have developed products to tap this potential. More and more banks
are moving from traditional brick and mortar branch banking to development of mobile banking
services. It has however been noted that despite the banks heavy investment in mobile banking
customers have not embraced the service due to a myriad of factors. This papers aim was to
investigate the influence of customers’ perception on adoption of mobile banking using the case
of selected branches of Commercial Bank of Africa. This study was guided by 4 hypotheses
derived from the objectives of study. Empirical literature published by various scholars was
reviewed. The study is grounded on the Tam Model in conjunction with the theory of perceived
benefits. The interrelationship between variables under study is captured in the conceptual
framework. Descriptive survey design was adopted with a target population of 107 customers
from selected branches. Using the Krejcie and Morgan table for determining sample size, 86
respondents were selected to constitute the sample size for this study. The desired representation
of the target population was achieved using simple random sampling and proportional sampling.
An interview guide and a 6 point questionnaire were used for data collection instruments with
questions constructed using 5 point likert scale. The questionnaire contained a section on
respondents details with the other sections designed based on the objectives under study. Pilot
testing was done using ten respondents a week prior to the actual data collection and results used
to refine the data collection instrument. The questionnaire was be tested for reliability using
Cronbach-Alpha Coefficient while validity was determined using content and construct validity.
The results of Cronbach-Alpha indicated that all factors had a coefficient greater or equal to 0.7
which shows that the instrument was reliable. The data was analyzed using spss the results which
were used for hypothesis testing, correlation analysis and generation of the regression equation
Y= 1.477+ 0.380X1+ 0.210X2+ 0.029X3+ 0.024X4.The findings showed that there was a
significant relationship between perceived usefulness and adoption of mobile banking service
(with t statistic p value <0.0002 < 0.05) and correlation coefficient of 0.6. Similarly perceived
ease of use had a significant relationship with adoption of mobile banking service (with t statistic
p value <0.0004 > 0.05) and correlation coefficient of 0.410.Hypothesis H1 and H2 are supported
by the results. This is in tandem with findings from other scholars who have conducted similar
research. However, perceived responsive (with t statistic p value =0.818 > 0.05), correlation
coefficient of 0.028 and perceived risk (with t statistic p value =0.998>0.05), correlation
coefficient of 0.0002 have no significant relationship with adoption of mobile banking service. In
relation to these findings, hypothesis H3 and H4 are not supported. The study recommends that
banks should adopt technologies that are value adding and easy to use by customers in order to
increase mobile banking adoption. Mobile banking platforms should also be secure and services
made available as per the set service level agreements.
Citation
Master of arts degree in project planning and managementPublisher
University of Nairobi
Collections
- Faculty of Education (FEd) [5964]