E-banking Strategies and Growth of Selected Commercial Banks in Nairobi City County, Kenya
Keywords:
E-banking Strategies, Growth of Commercial Banks, Electronic Bank Transfer, Online banking, Point of Sale (POS)Abstract
Purpose: The growth of Kenyan commercial banks has been sluggish despite the widespread adoption of the latest trends. This delayed progress can be attributed to the uncertainty surrounding the outcomes of the devised e-banking strategies by management. The growth of commercial banks in Nairobi City County, Kenya has been significantly affected by the rate of adoption of technology, which is one of the latest trends in banking. A majority of the clients of commercial banks in Kenya have been hesitant to embrace the new trends in form of online banking in preference for traditional banking as a result of a lack of trust. In addition, there have been also some challenges in Point of Sale (POS) systems, e-banking transfers, virtual assistants, and chatbots. This research aimed to investigate the impact of e-banking strategies on the growth of selected commercial banks in Nairobi City County, Kenya.
Methodology: To achieve the study's objectives, a descriptive research design was employed. The target population comprised managers of commercial banks responsible for strategy implementation. The sample included Digital Banking Managers, Operational Managers, IT Managers, Customer Relations Managers, Finance Managers, and Business Development Managers, totaling 54 respondents. Before data collection, a pilot study was carried out to assess the feasibility of the research. Additionally, validity and reliability tests were carried out to ensure the research instrument accurately measures its intended variables. Data was collected through a combination of closed and open-ended questionnaires, administered via drop-and-pick methods. Subsequently, the collected data was analyzed through descriptive analysis.
Results: The study found that e-banking strategies, including SMS banking, POS systems, Electronic Bank Transfers, and virtual assistants/chatbots, significantly impact the growth of commercial banks in Kenya, despite challenges such as unread messages and interoperability issues.
Conclusion: It was concluded that banks should address usability concerns, strengthen security measures, and prioritize user-centric design to maximize benefits. Recommendations include enhancing SMS banking usability of commercial banks, improving transaction security, and investing in technological innovations for operational efficiency and competitiveness.
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