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.