Influence of Digital Technology on the Perfomance of Kenya Commercial Bank
Abstract
The Banking sector in Kenya has been faced with extreme competition both from within the
industry and outside the industry. The entry of Fintech start-ups and the emergence of Mobile
money technology has placed the traditional banking sector on a very tight rope. In order to
remain relevant and profitable the commercial banks in Kenya have opted to be innovative in
their operations through adopting new and emerging technology in the market. The adoption
of new and advanced form of technology in the market has proved to be a strong enabler to
the commercial banks profitability and business sustainability. Just like many other
commercial Banks, KCB bank has also been affected by the disruption in the Banking sector
through digital technology. Despite the turbulence KCB has experienced, it has remain
steadfast as a leader in the industry through implementing strategies that focus on innovation
and technology. The study sought to determine the influence of digital technology on the
performance of KCB bank. A case study design was employed to conduct the study while the
primary data was collected using interview guides administered to seven senior managers
associated with the implementation of digital technology strategy at KCB bank. The data was
analysed using content analysis and was presented in form of narrative. The study concluded
that the adoption of digital technology has led to an overall improved performance at KCB
bank however more investments needs to be channelled in the areas of technological
research and design since the market is very dynamic and progressive. This is evident by the
fact that over 90% of the bank’s transactions have shifted to the digital platforms. The study
also found that the adoption of digital technology has helped KCB bank improve on the rate
of its customer acquisition. As at 2018, the rate of customer acquisition had increased by
44%. This result was seen to be attributed by increased mobile phone penetration and
advancement in mobile phone technology. The study further concluded that adoption of
digital technology has enhanced operational efficiency by reducing the cost of operations and
making banking processes to be seamless and convenient to the customers.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
The following license files are associated with this item: