Determinants of the Adoption of Internet Banking Project in Kenya Commercial Banks- a Case of KCB Bank, Nairobi County

Abstract

The research-project intended to probe the determinants of the adoption of internet banking project in financial institutions: a case of KCB bank, Nairobi County. The Central Bank of Kenya (CBK) regulates the operations of the banking industry in the country, including 42 for-profit banks and 12 microfinance among others. In addition, the regulatory body supervises a mortgage financial institution and finance organizations such as forex bureaus and credit agencies. The advent of innovative solutions in the information technology has expressively changed the operations and delivery of services by banks in addition to saving costs and improving efficiency. The intentions of the investigations was to scrutinize the elements that sway the uptake of internet banking programme by the institutions of finance in Nairobi County, with specific focus on the Kenya Commercial Bank (KCB). The objectives of the study include to establish the level that technology influences adoption of internet banking system at KCB Bank, determine weight of economic factors in adapting internet banking system, establish the degree that staff and customer contribute in adoption of internet banking systems and identify the extent to which the organization IT infrastructure determines the adoption of internet banking at KCB Bank group. The findings of this research were to highlight the trending customer behavior in regard to the introduction of internet banking thus help develop appropriate support policies and systems. The Technology Acceptance Theory (TAM) advised the theoretical understandings of the research. A descriptive research model guided the solicitation of data from 102 permanent KCB staff, drawn from 36 branches across the region of Nairobi. A questionnaire was the main research instrument used. Piloting of the tools targeted 12 individuals working in the KCB and the results were used to verify the reliability and validity. The empirical data from the main survey was organised, cleaned and analysed using SPSS version 22 to generate descriptive and inferential statistics that were presented in tables, charts and narratives. The descriptive statistics and regression analysis were performed to determine the association between predictor and response variables. The investigations were performed in lieu of ethical considerations. The economic factors, IT infrastructure and staff attributes were significant predictors in the adoption of internet banking by KCB. The findings indicated that the banks are more likely to accept internetbanking programs provided they are efficient and sustainable.