A survey of e-commerce services in commercial banks in Kenya
Due to competition, banks in Kenya have generally adopted Internet technology in their service delivery. This study investigated the range of E-commerce services offered by commercial banks in Kenya. Other objectives of the study were to establish the benefits and challenges faced by banks in implementing E-commerce products and services. These objectives were achieved through a survey of commercial banks in Kenya. A total of 40 questionnaires were distributed however only 35 banks responded representing 87% response. The outcome of the study shows that overall 94% of banks use automated clearing through EFT, 80% electronic transfer payment facility and 66% use settlement of payments real time. Settlement of government securities electronically is used by 43% whereas 17% of banks use truncation and cheque imaging facility. Overall 54% of banks use ATMs services with 80% of banks with government participation and 59% of wholly locally owned banks using it. However credit cards and debit cards are used by 14% of banks overall. The E-commerce services by commercial banks in Kenya has been influenced by the need to increase customer base, expand geographical reach, meet customer demands and keep pace with rapid technological changes. The impact of use of technology has been improved customer service, reduction of customers from the banking halls, increased revenue, reduction of operation cost and increased market share. However the use of E-commerce services has brought a number of challenges. These include, ensuring desired levels of security and privacy, dealing with security breaches, Integration with banks' other back office systems, Unreliable telecommunication as well as lack of legislation governing E-commerce transactions.