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M.Tech / M.E / PhD Thesis | Information Technology | Kenya | Volume 6 Issue 11, November 2017
Consumer Perceived Risk of Internet Banking in Kenya: A Survey of Three Selected Banks in Nairobi County
Orucho Daniel Okari
Abstract: The purpose of this study was to examine consumer perceived risk of internet banking and adoption in Kenya with reference to three selected banks and suggest possible solutions to enhance customer satisfaction. Objectives of this study were to, examine factors that influence adoption of internet banking in the three selected commercial financial institutions, determine the extent of use of internet banking services by customers in the three selected banks, find out challenges facing use of internet banking by customers in the selected banks and find out solutions to the challenges that hinder consumers in the use of internet banking services in the selected banks. This was a quantitative and descriptive survey of the three selected banking institutions. Data was collected using questionnaires that were distributed using lead people in the respective banks. The questionnaires were structured with both open ended and closed ended type of questions. Data was analyzed using Microsoft excel and presented using charts and tables. A total number of 150 respondents were used for this study. The study established that young adults are mostly involved in the use of internet banking services. The study established the extent of use of internet banking by customers with the majority using internet banking services for inquiries, withdrawals and deposits. The study found out challenges hindering use of internet banking services by customers as slow network connection, network failure, poorly designed websites and unavailability of services during website maintenance. In order to promote use of internet banking services, there is need for banking organizations to launch awareness campaigns to customers by alleviating fear to issues such as lack of privacy and security of customers information through advertisements as well as promotions could be held at bank branches to offer prizes to customers who sign and use internet banking services. The rapid development of internet banking has created a competitive environment for financial institutions offering internet banking. Internet banking enables customers to perform financial transactions via the internet at any time and from anywhere and thus saving time. Banks also benefit from reduced operational cost by adopting internet banking.
Keywords: Internet banking
Edition: Volume 6 Issue 11, November 2017,
Pages: 645 - 656