Technology and competitive advantage of commercial banks in kenya
Technology has greatly changed the way that commercial banks and consumers interact. A shrinking customer base, increases in number of commercial banks with almost identical products have led to stiff competition. As a result, commercial banks have generally adopted the use of technology in service delivery to customers. This study‘s main objective was to the relationship between technology and competitive advantage in commercial banks in Kenya. The research was carried through across-sectional survey design which questioned respondents on investment in technology and perceived competitive advantage. The respondents of the study were employees of banks with a focus on managers in operations, IT and customer service departments. A total of 78 questionnaires distributed, however only 60 banks responded. The Statistical Package for Social Science (SPSS) version 17.0 was used in data analysis. The data collected was analyzed by use of frequency, percentage, means and correlation analysis. The findings revealed that, commercial banks have placed invested in technology in traditional practices such as use of ATMs, while embracing Mobile Banking mainly as a result of reacting to competition from mobile service providers. Commercial banks have also automated cheque imaging and real time payments as a result of this being a requirement by the sector‘s regulator. Commercial banks have gained competitive advantage mainly through increased turnover and profitability and expanded geographical reach. The study recommends concerted effort to invest in technology for more personalised service and high quality customer service needs to be exploited.