| dc.description.abstract | Since the advent of the internet, intelligent telephony and e-logistics, there have been rapid and substantive changes in channels of distribution of goods and services in the world and significantly in developing economies. The main objective of the survey was to study the influence of customer behaviour on adoption of alternative banking channels at the co-operative bank of Kenya, Nairobi County. This study employed a cross-sectional survey design. This study involved a systematic collection and analysis of data in order to examine the influence of consumer behaviour on adoption of alternative banking channels in Co-operative Bank of Kenya in Nairobi County. This study involved all Co-operative Bank branches in Nairobi County. The total number of branches studied was 40, as established from the Banks’ website. The study targeted individual customers of the Nairobi branches. The data for this study was collected using questionnaires. Findings from the study established that mobile banking channels from telecommunication companies are more popular for financial transactions with co-operative bank customers than the bank own mobile banking channel. The survey also established that those channels that are consistent with the consumer behaviour needs for security, recognition by peers, cost containment and ease of use, are adopted better. Customer preference for low cost transactional channels supersedes channel convenience as a criteria for selection and adoption. The study also established that although the banks’ customers are familiar with alternative channels like the internet banking channels and agent banking outlets and the services offered there, this familiarity is not a key driver for adoption. The study establishes that the consumer behaviour of doing banking and financial transaction at the eleventh hour determines the selection and the consequent adoption of various alternative channels. Internet banking at Co-operative Bank has not been adopted by the customers interviewed. The study establishes that internet banking as an alternative channel doesn’t meet the customer behaviour desire for ease of use and trust in relation to security. Channels that don’t deliver a clear relative advantage as perceived by the customer, like the internet banking, have not been adopted. The consumer behaviour of avoiding complex service delivery channels and avoiding risk makes Automated teller machines (ATMS) remain the most adopted alternative channels after banking in the physical branches. There is no discernible gender disparity noted in the selection and adoption of alternative channels as both men and women, across income levels demonstrated similar channel adoption behaviour patterns. The study established that desire for privacy of transaction, ease of use and security are key drivers for alternative channels. Alternative channel unreliability is the single biggest reason why customers at Co-operative Bank avoid Internet and agent banking. Branch banking was the most preferred mode of banking by the respondents. Recommendations are made that Cooperative bank should run marketing programs that sell alternative channels not a convenient alternative to branches, but as cost saving alternatives useful for emergency transactions. Secondly the marketing strategies should be developed to reassure consumer that the alternative channels are not only physically secure, but that the consumer transactions are protected from external interference even inside independent agents. The bank should demonstrate to customers that it supervises and monitors the transaction that happen in all its outlets and the same security standards that exist inside a physical branch also exist in the alternative channels | en_US |
