Challenges in implementing electronic banking strategy by commercial banks in Kenya
Electronic or online banking is the newest delivery channel to be offered by the retail banks in many developed countries and there is wide agreement that this channel will have a significant impact on the market. Kenya has not been left behind in this development. Although electronic banking is a growing phenomenon, the underlying factors inhibiting its implementation are not well understood. This paper presents the challenges inhibiting electronic banking implementation and how banks are responding to these challenges. The targets of the study were the commercial banks in Kenya. This study gives a brief overview of the academic literature on the challenges and the responses that organizations employ in strategy implementation and the extent of electronic business use. The findings from the Kenya Commercial banks are then reported. The paper concludes that there exist various challenges to the implementation of electronic banking in Kenya Commercial banks. The banks have thus employed strategic responses to overcome these challenges with some of the responses being more popular than the rest depending on the Impact they have on the implementation process. Lack of required infrastructure, resources and specialized skills, commitment from the senior management team and fear of adopting the system by both the bank employees and customers were some of the major challenges that were identified while training of bank employees and customers, employing specialized technology and staff and lowering electronic banking charges were some of the popular responses that banks have been using. The entire internal and external environment however needs to be considered during the implementation of the electronic banking strategy.