Determinants of Adoption and Usage of Banking Innovations by Consumers for Competitive Advantage: A Case of Banks in Nakuru County

Lumumba Faith Amboko, Juma Wagoki

Abstract: This study purposed to examine the determinants of adoption and usage of banking innovations by consumers for competitive advantage. Its objective was to establish the extent to which ease of use of bank innovations influence adoption and usage of banking innovations by consumers. Descriptive research design was used for the study.25 banks were selected, with a sample size of 325 each having 13 bank clients being interviewed. Questionnaires were used to collect data. Analysis of data was done using Statistical Package for Social Sciences (SPSS). Descriptive statistics used percentages, frequencies while correlation analysis tested the relationship between independent and dependent variables. The study found out that there is a relationship between ease of use and adoption and usage of innovations by banks r=.646, p=.000< (0.05). Thus conclusions were made that ease of use of technology highly determines the adoption and usage of banking innovation. The study thus recommended that a market research should be undertaken before rolling up of any new banking technology to educate and prepare bank users on what awaits them.

Keywords: Technology, Ease of Use, Innovation