Influence of Information and Communication Technology Integration in Growth of Commercial Banks in Kenya: a Case of Kenya Commercial Bank Kenya Limited

Abstract

Information,communication and technology (ICT) has revolutionized how commercial banks operate by changing and simplifying cumbersome bank processes to the benefit of the shareholders and customers. A proportion of commercial banks have however not embraced ICT and have therefore not been able to compete effectively in the financial arena. This study examined the influence of ICT integration on the growth of commercial banks in Kenya with a hope that it would encourage other players to see the benefits of ICT integration.The objectives of the study were to determine how digital marketing influences growth of commercial banks, to assess how mobile banking influences growth of commercial banks , to establish the extent to which internet banking influences growth of commercial banks and to examine how customer centric technology influences growth of commercial banks. The study brought out how various ICT indicators employed by Kenya Commercial Bank have influenced growth of commercial banks. The study findings will be of great significance to the bank management, project leaders and industry as a whole facilitating them in coming up with long term solutions while underscoring the need to digitalize. Stratified random sampling technique was used to select bank managers from KCB Bank Kenya Head Office and three selected branches within Nairobi region. The target population was 251 managers that yielded a sample size of 50 managers using theory on sampling procedure that recommends that a representative sample should be between 10% and 30%. Descriptive survey research design was employed and structured questionnaires were used as the main method of data collection. Quantitative and qualitative data was obtained from 41 managers. The data was analyzed in percentages and presented using tables. The study found out that ICT has been integrated by commercial banks through; Digital marketing, Internet Banking, Mobile banking and customer centric .The study recommended that banks should ensure cyber security as they integrate ICT in its operation. Further studies on ICT integration on Microfinance institution should be carried out.