Information communication technology as a source of competitive advantage at kenya commercial bank group limited
Information Communication Technology and the Internet in particular can create a competitive advantage and improve performance and competitiveness. The Kenyan banking sector, over the years, has experienced stiff competition due to the homogeneity of products and services offered by the banks. As a result, banks have been forced to adopt and apply ICT towards enhancing financial service delivery aimed at satisfying customer needs and ensuring they retain their market share. Kenya Commercial Bank Group Limited has adopted ICT to a great extent focusing on mobile banking, internet banking and agency banking. The bank has developed new pre- paid debit card KCB MeCash to leverage on its huge investment in modern Information Technology infrastructure to enhance cashless payment solutions.The objective of the study was to determine how usage of ICT influences competitive advantage in KCB Group Limited. The research design for this study was a case study since the unit of analysis is one organization. Primary data was collected using interview guide. Content analysis was used to analyze collected qualitative data. The study concluded that ATM is a source of competitive advantage at KCB Group Limited as it helps the bank in replacing the heavy overhead bank branches, lowering cost of operation and lowering delivery cost of financial services to customers and increasing non funded incomes. It also leads to an increase in customer base and customer deposits which in turn results into earning of more interest and increases interest margin thereby influencing the achievement of competitive advantage in the bank. The study concluded that adoption of telephone banking at KCB Group Limited influence achieving of competitive advantage by improving convenience and expanding access to financial services. Telephone banking also ensures significant time saving, increases bank income level, and increases bank telephone deposits, increases remote bank branches and also leads to anincrease in bank customer base . ICT adoption has assisted KCB Group Limited in delivering differentiated financial products and services such as mo bile phone banking dubbed KCB Mobi and KCB Bankika. The bank has also ensured enhancedifferentiation of products through development of new financial products for different groups of customers in the markets. The study recommends that commercial banks should adopt ICT such as ATMs as it contributes to achieving of competitive advantage through replacing of the heavy overhead bank branches, lowering of cost of operation, lowering cost of delivering financial services to customers ICT adoption has also resulted into an increase of non- funded income, lower co st of financial delivery, increase in bank sales, increase in customer base and customer deposits. The benefits realized through ICT adoption has led to the generation of more profits, increased interest margins and thereby influencing achievement of competitive advantage in the bank.