A survey on the relationship between technology and service quality in the banking industry in Kenya
The use of technology has become prevalent in the current banking institutions. Due to the competitive nature of this industry, almost every bank is embracing technology to increase its competitiveness. This study establishes the relationship between technology and service quality in banking industry, and determines the factors that lead to customer preference of different electronic banking channels. The research was carried through across-sectional survey design which questioned respondents on e-banking services. The population of study mainly constituted of customers of banks within the Central Business District (CBD), Nairobi. The respondents of the study were customers of banks using e-banking services (internet banking, mobile banking and ATM). The sample in this study consisted of 120 respondents who are users of the e-banking services. The data collected was analyzed by use of frequency, percentage, means and correlation analysis. The rank order of service dimensions indicated that, 66.2 percent of the respondents revealed that, secure services as the most important dimension, followed by convenient location of ATM, efficiency (not need to wait), ability to set up accounts so that the customer can perform transactions immediately, accuracy of records, user friendly, ease of use, complaint satisfaction, accurate transactions and operation in 24 hours. The study though successful, had some limitations in response rate due to suspicion by customers of any inquisitive personality especially on technological issues which are believed to have posed a lot of theft cases in the banks. The customers of the banking institutions were also very busy and as such dedicating their time to fill the questionnaires was problematic.