The extent of use of expert systems in loan analysis in commercial banks in Kenya
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It is documented that several credit analysis expert systems (ESs) have been developed to improve the throughput and accuracy of loans granted and to ensure greater consistency of a loan review. This study explores the extent of use of ESs in loan analysis in the banking industry in Kenya and the factors underlying adoption. From the review of literature, six major variables (technology benefits awareness, government support, compatibility, management support, technology existence awareness and technology innovativeness) are identified as being the major determinants of adoption of ESs for loan analysis. For each of these constructs, indicators are used to determine their influence on adoption of ESs. The survey research strategy is employed in this study. Findings indicate that technology benefits awareness construct is most responsible for positively influencing adoption of ESs in loan analysis while government support is the one with the least influence, whether positive or negative, on adoption of this application. On the extent of use, this study reports that a majority of banks do not use ESs for loan analysis and even among users, on average, less than 50% of their evaluation process is covered by . the system. Indicators of client pressure and top management support were found to have a great influence on adoption of ESs for loan analysis. Where there was no client pressure then banks saw no need to adopt this application and vice versa. The same was observed for management support. Based on the findings it is recommended that additional data collection methods such as interviews be employed in future studies in order to enhance their depth and richness. It is also recommended that a future study takes on a region-wide context in order to compare findings with the local banking industry.