Factors Influencing The Adoption Of Digital Banking By Customers Among Commercial Banks In Kenya

Abstract

Digital banking has been adopted by many developing countries, which has led to better product offering, improved customer service and overall customer experience yet in Kenya; there is a very low adoption rate by the customers. The objective of this research was to find out the factors influencing the adoption of digital banking services by customers among commercial banks in Kenya. This study was guided by Rogers‟s Diffusion of Innovations theory. The study used descriptive research design. Primary data was collected using questionnaires. A total of 210 questionnaires were administered, out of this 168 questionnaires were fully completed which are the ones which analyzed. The findings were analyzed and presented in frequency tables. Chi square tests were carried out to find out the relationship between the independent and dependent variables. The interpretation of data analyzed from this particular research revealed that digital banking is desired among many in Kenya. The study also found out that demographic factors like age, level of education and occupation had an influence on the adoption of digital banking services. Customer perceptions and attitude factors also influenced the adoption rates while social factors did not influence the adoption of digital banking services. From the research, the main factor hindering the adoption of these services is security concerns, lack of skills and also customers did not know about the benefits of using these services. Among the recommendations made, banks need to enhance security features for their systems, provide skills training and invest more in creating customer awareness on what can be done using these alternative channels of banking and their benefits