Technological Innovation Strategies and Service Delivery of Commercial Banks in Kenya During the Covid-19 Pandemic

Abstract

The focus of this study was to examine how commercial banks in Kenya responded to the COVID-19 pandemic by utilizing technological innovation strategies to enhance their service delivery. The aim was to investigate the correlation between the implementation of these strategies and the banks' capacity to offer high-quality service amidst the pandemic. The research was anchored on the Technology Acceptance Model and Service Quality Theory. The extent of technological innovation adoption among 38 commercial banks in Kenya was examined through a survey therefore a census survey was conducted. With the aid of semi-structured questionnaires, primary data was gathered. Google Forms questionnaires were sent to managers in various departments via email and WhatsApp, and 31 responses were analyzed via SPSS. The results indicated moderate adoption of technological innovation strategies by the banks. It also revealed a positive link on the use of Digital self-service management, Virtual Assistant, Digital Account Opening, and API strategies and the banks' service delivery. However, the composite impact of these strategies on service delivery was only 62.4%, indicating the need for improvement. The research suggests that managers should exercise caution when implementing new technologies to ensure they meet the needs of both employees and customers. Banks should also make consistent efforts to improve their service delivery. The technological innovation strategies put into practice might not fully adhere to the quality service standards and criteria set forth in the SERVQUAL scale: tangibles, reliability, responsiveness, assurance, and empathy. An approach utilizing a mixed-method approach will be needed to better understand innovation in banking and service delivery. The reasons behind the unexpected negative relationship between innovation and service delivery should also be examined, despite the expectation that innovation will improve services. The study's findings demonstrated that technological progress has had significant effects. The study is anticipated to advance local understanding of organizational structure, strategic leadership, and strategy execution ideas. Researchers now have the chance to look at the efficacy of technology advancements embraced by Kenyan commercial banks. As a result, decision-makers and other interested parties in the banking sector should utilize the research results and profit from the application of the right kind of innovation to enhance service delivery.