A framework for the adoption of mobile banking applications in the Kenyan banking systems

Abstract

Adoption of Mobile Banking applications has become fundamental in the banking industry owing to the values that are transacted using these systems. The mobile revolution has transformed the lives of Kenyans, providing not just communication but also basic financial access in the form of phone based money transfer and storage. More emphasis has been put in the development ignoring the adoption drivers. As a result financial service providers have spent lots of money procuring and developing mobile banking applications which the customers, who are the main users of such systems, have not embraced. This study sought to develop a framework for the adoption of mobile-banking applications in the in the Kenyan banking sector, be able to apply the framework to study factors influencing adoption of a mobile banking application for a Kenyan commercial bank as well as validate the conceptual framework. A survey is used to collect quantitative data on the model’s predictors; intention to use and individual characteristics was used. The study established that performance expectancy, effort expectancy, facilitating conditions, perceived trust and transaction duration were key determinants for Mobile Banking applications acceptance, adoption and usage. The study further demonstrated that age, gender and awareness were moderating factors on perceived trust only. Key words: Mobile banking applications, framework, adoption