Factors Influencing The Adoption Of Mobile Banking Technology By Bank Customers In Machakos Town

ABSTRACT

Over the years, banking has undergone transformation from the traditional way of

customers queuing for services in the banking halls to modern day banking where

banks can be reached at anytime and anywhere for their service. Today banks have

welcomed mobile technology as a package which enables bank customers to pay bills,

deposit, plan for payment, check account balance and transfer money anytime

anywhere. Empirical research has shown that while mobile banking have become

popular in some countries and regions, they are still not widely used. This study

sought to identify and investigate the factors which influence customers decision to

use mobile banking in Kenya with a particular interest in Machakos town. A

descriptive research design was employed. The study targeted a population of 116,800

bank customers from three commercial banks purposively selected for this study,

from which a convenient sample of 399 customers was selected. The formula by

Israel (1992) which was also used by Oluoch (2012) was used to calculate the sample.

To collect data, the researcher used a closed ended structured questionnaire that was

personally administered to the respondents. Data was analysed using descriptive and

inferential statistics. This analysis focused on establishing the influence of bank

factors, individual customer characteristics, and availability of infrastructure, on

adoption of mobile banking technology. An analysis on the association between the

bank factors, individual customer characteristics and availability of infrastructure

(independent) and Mobile banking adoption it was established that there is a strong

positive correlation between bank factors, individual customer characteristics and

availability of infrastructure (independent) variables and adoption of Mbanking(

dependent) with individual customer characteristics having a closer

association compared to the others. This was followed by bank factors. The factor

with the least association was the availability of infrastructure. The positive

correlation implies that there is a significant association between the independent

variables and adoption of M-banking implying an increase in any of the independent

variables will cause a positive increase in adoption of M-banking and vice versa.