Application of e-banking strategies by commercial banks in Kenya
The introduction of e-banking in Kenya had a great impact on the way in which Commercial Banks in Kenya conduct their day to day business. This state of affairs compelled the researcher to conduct this study on the extent of the application of ebanking strategies by commercial banks in Kenya. The study engaged the use of a descriptive research design in order to obtain the necessary data as it facilitated primary data collection as a means of getting into the research objectives. The population under study was all commercial banks in Kenya. A total of 43 employees directly involved in ebanking in their respective banks were engaged in the study. The findings with regards to the extent of E-banking services in Kenya revealed that all banks have adopted e-banking services. Similarly it was revealed that the most popular mobile service in Kenya was accounts information, followed by support services and finally investment services. Looking at the study findings, it is revealed that majority of the respondents (40 percent) rated e-banking highly, that about 76 percent of the respondents agreed that the e-banking services are easy to use, that internet banking is characterized by some unique features that equip it with certain advantages against conventional forms of banking. It was also revealed that internet banking enhances customer attraction and retention since technology does not require a lot of training. The banking industry being a growing sector in Kenya as well as the whole world brings about the need for careful examinations of various ways of making it more competitive and therefore profitable. The researcher believes that more innovations in this line will enhance growth in this sector. The findings of the study indicate that banks should pay special attention to convenience by providing the customers with e-banking service at points which can easily be accessible, improve their mobile banking platforms so as to improve the efficiency in the service delivery hence boosts customer confidence. Finally Banks should provide customers with a toll free number. This could handle customers with complaints and general feedback about the electronic banking services. This would not only provide a service to a customer that is free, but also provide the bank with valuable information for future development on electronic service. The most talked about challenge was the element of confidentiality given that the study focused on a sensitive area of e-banking strategy, some managers were not willing to offer detailed information on their innovations as a matter of caution. The researcher however recommended that a study should be carried out to determine the parameters of the customer‟s “zone of zero tolerance”. This will enable managers to understand at what point customers cease to be satisfied with core service they are receiving.