INFLUENCE OF ALTERNATE BANKING CHANNELS ON CUSTOMER SATISFACTION AT KENYA COMMERCIAL BANK IN NAIROBI, KENYA
Susan Wanjiru Mugambi - Master of Business Administration, Business School, Africa Nazarene University, Kenya
Dr. Isaiah Imaita - Business School Africa Nazarene University, Kenya
ABSTRACT
The adoption of alternate banking channels (ABC) in the banking sector has had increasing impact on customer satisfaction through improved convenience, efficiency, flexibility, and speed of completing bank transactions. Yet, adopting these ABCs comes with challenges of frustration, uncertainty, and confusion for both the provider and the customer. Factors that influence the adoption of alternate banking channels to give the desired outcomes in performance and satisfaction include, but are not limited to, customer readiness, employee readiness, and service quality. The aim of this study was to assess the influence of alternate banking channels’ adoption on customer satisfaction in the banking sector in Kenya. The objective of the study was to investigate the influence of customer readiness, service quality, and employee readiness in adoption of alternate banking channels on customer satisfaction in the banking sector in Kenya. This study utilized the Technology Acceptance Model (TAM) theory and Diffusion of Innovations (DOI) theory. The study adopted the causal research design. The target population was 4.500 employees in Kenya Commercial Bank based in Nairobi County. Nassiuma Formula was used in sample size determination and stratified random sampling was used in the selection of 144 employees. The researcher used a questionnaire to collect primary data. To assure the validity and reliability of the questionnaires, pilot testing randomly selected Nairobi branch network employees. Both descriptive and inferential statistics were used in the analysis of data with the help of Statistical Package for Social Sciences (SPSS) version 22.0. Data was presented in pictorial methods of graphs, tables, and charts. This research study intended to increase knowledge of the benefits of adopting ABCs during the age of digitization to the banking sector, academic institutions, and researchers, regulators, and policymakers. The findings showed that there is a positive and significant relationship between customer readiness and customer satisfaction in KCB Bank. Furthermore, the study found that there is a positive and significant relationship between service quality and customer satisfaction in KCB Bank. Moreover, the findings established that there is a positive and significant relationship between employee readiness and customer satisfaction in KCB Bank. The study recommends that KCB Bank should keep adopting alternate banking channels in order to reduce the waiting time at the bank and attract more customers such as those with low income and the elderly in society. In addition, all commercial banks in Kenya should train the employees on the modern advancement in ABC to help them respond to the problems and ambiguities of bank customers and provide high-quality services. Further, the Kenya Commercial Banks should equip the employees with relevant knowledge and skills to enable them fix ABC breakages as soon as possible so as to ensure that the services are delivered on time. Also, the study recommends that the management of KCB Bank should educate and guide the customers on how to use ABC so as to reduce the waiting time at the bank and enable the people in the remote areas to access bank services.