Retail Technology and Operational Performance of Commercial Banks in Kenya
Abstract
The aim of the study was to establish if the use of retail technology in commercial
banks in Kenya had an impact on the bank’s operational performance. The specific
objectives were to determine the retail technology commonly used in the commercial
banks in Kenya, and determine if there was a relationship between retail technology
use and operational performance in commercial banks in Kenya. This study used a
descriptive design. Descriptive research design is a scientific method that involves the
observation and description of a subjects behavior without imputing any form of
influence to it. The population of interest to the study was all commercial banks
operating in Kenya. There are currently 42 commercial banks operating in Kenya.
Data was collected from all the banks in Kenya, the study being a census survey. The
census method was thus used. Primary data collection was done through the
administration of a semi-structured questionnaire to the operations manager of each
bank. The use of a questionnaire ensured collection of data within a short time. The
data was processed through coding then descriptive analysis of the codes done.
Quantitative data was processed by tabulation and the descriptive analysis done.
Multiple regression analysis was used. The study found that retail technology was
applied in the banks. The study also established that the bank uses mobile banking as
the retail technology in its operation. The study further established that the bank uses
mobile banking to a great extent as compared to other retail banking practices. The
study established that to a great extent that a customer friendly environment while
waiting for service, such as music and running advertisements of other available
products while waiting for service, was very good at the banks. It also established that
retail technology influences the operational performance of commercial banks to a
great extent. At a 5% level of significance and 95% level of confidence Internet
Banking, Mobile Banking, Electronic Payments, Information Exchange, and ATM
Banking were all significant retail technology practices to increased operational
performance of commercial banks in Kenya. This study concluded that to a great
extent that all the customers’ transactions were processed efficiently without waiting.
This was the practice that had been applied in the retail technologies to a great extent.
The study also concluded that to a great extent that all the transactions are processed
efficiently without waiting is an important retail technology practice in the
commercial banks. The study recommended that Commercial banks adopt more retail
technology practices that were not specifically mentioned in this study alongside the
use of the current ones discussed for the results suggests that the influence
performance to a great extent.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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