Relationship Between Mobile Phone Banking Technologies and Customer Base of Commercial Banks in Kisumu County, Kenya
Abstract/ Overview
Mobile phone banking technology is revolutionizing the global banking and payment industry. It
offers new opportunities for commercial banks to provide added convenience to their existing
customers in both developed and developing countries. However commercial banks are being slow in
embracing mobile phone banking technology, only 17 out of 46 commercial banks as at 2013 were
facilitating mobile money transfer, consequently risking being left behind in terms of enhanced
customer services. The relationship between mobile phone banking technology and customer base of
commercial banks in Kisumu County is not known. The main purpose of the study was to determine
the relationship between the mobile phone banking technology and customer base of commercial
banks in Kisumu County, Kenya. The specific objectives were to determine, examine and ascertain
respectively the relationship between Interactive voice response, Standalone mobile application
clients, short messaging service technology and customer base of commercial banks in Kisumu
County, Kenya. The conceptual framework shows customer base as the dependent variable,
perceived adoption of mobile phone banking technologies as the independent variable and the mobile
phone bank environment as intervening variables. The study was anchored on the theories of
technology adoption model, innovation diffusion theory and contemporary banking theory. The study
used both descriptive and correlation research designs on a population of 30 commercial bank
branches in Kisumu County, Kenya chosen on the basis of convenience to the researcher. Test re-test
confirmed reliability at alpha (a) equal to 0.8. Data was obtained by use of semi structured
questionnaires administered to bank managers. Data was analyzed using both descriptive statistics
such as mean and standard deviations and correlation analyses. Data was presented using bar graphs
and pie charts to present the findings. The findings show that there is a positive correlation between
IVR technology r = 0.665, n = 30, P = 0.000, standalone mobile application client technology r =
0.258, n = 30, p= 0.169, SMS technology r = 0.233, n = 30, p = 0.215 and customer base meaning
that adoption of mobile phone banking technology increases perceived customer base of commercial
banks in Kisumu county Kenya. The study concluded that IVR, standalone mobile application client
and SMS technology positively correlates to customer base hence mobile phone banking
technologies positively correlates to customer base of commercial banks in Kisumu County Kenya.
The study recommended that commercial banks should adopt mobile phone banking technologies.
Further studies should be carried out on threat of network providers in providing banking services.
The study is immensely significant in diverse ways to all stakeholders since the findings increase
general knowledge on the subject of mobile phone banking technology.