Factors influencing the adoption of internet banking at the Kenya Commercial Bank: the case of University Way Branch, Kenya
This study sought to empirically determine the factors influencing the adoption of Internet banking at the Kenya Commercial Bank with an emphasis on University Way branch. Organizational readiness, trust and perceived risk in the system, technology adoption and attitude formulation were examined to determine if these factors are affecting Internet banking adoption. A survey of 86 respondents comprising of Internet banking users was used by employing simple random sampling. The study utilized 62 usable samples giving a response rate of 72 percent. Data was analyzed by use of descriptive statistics and correlation analysis. The results showed that organizational readiness to Internet banking, user trust and perceived risk in the system, the level of technology adoption and the prevailing attitude towards Internet banking were positively associated with adoption of Internet banking in the branch. Organizational readiness to technology adoption is crucial for the succes internet banking. Trust and perceived risk dictates whether a user utelizes the service or not, while technology adoption is related to whether the users are willing to take on new technology development in the bank in the bank. There is need for the bankers to carry out intensive training progrms targeting their customers on the benefits of internet banking usage. Managers should make efforts to minimise the level of risk exposure customers face while transacting their business online. The findings are expected to be of great use to the goverment, the regulators, commercial banks, and other interested players in the financial sector like the bank customers and researchers. The bankers and the society at large will come to know where the banks lag in terms of adoption of Internet banking and in providing different products and services. An understanding of the factors affecting the extent of Internet banking services is essential both for economists studying the determinants of growth and for the creators and producers of such technologies. Moreover, this study will significantly contribute to the empirical literature on diffusion of financial innovations, particularly Internet banking, in a developing country like kenya.