impact of mobile and internet banking on performance of financial institutions in kenya

Topics: Bank, Mobile phone, Mobile banking Pages: 26 (5837 words) Published: May 30, 2014
THE IMPACT OF MOBILE AND INTERNET BANKING ON PERFORMANCE OF FINANCIAL INSTITUTIONS IN KENYA.

PRESENTED BY

ADM NO

NAME OF INSTITUTIONS:
SUPERVISOR:

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE IN BUSINESS MANAGEMENT.

2014

DECLARATION
Student’s declaration
I hereby declare that this research proposal is my own original work and has not been presented to any institution of higher learning for the award of diploma in community development.

NAME:
SIGN:
DATE:

Supervisor’s declaration
This research proposal has been submitted with my approval as the institution supervisor. NAME:
SIGNATURE:
DATE:
Table of Contents
 
1.0Abstract………………………………………………………………………………….4  Chapter 1:
Introduction…………………………………………………………………….. ………….5 1.1Background Information. ………………………………………………………………5 1.2Problem Statement ………………………………………………………………….......7 1.3Objective of the study……………………………………………………………….......8 1.4Significance of the study……………………………………………………………......8 1.5Limitations of the study………………………………………………………….... …...8

Chapter 2: Literature review………………………………………………………………. 9 2.1 Theoretical framework………………………………………………………………..9 2.1.1 Theory of information production and contemporary banking theory……………….9 2.1.2 Innovation diffusion theory ………………………………………………………….9 2.1.3 Empirical studies……………………………………………………………………..10 2.2 Internet banking………………………………………………………………………10 2.3 Trends in mobile and internet banking………………………………………………..10

Chapter 3: Research design and methodology……………………………………………...11 3.0 Research methodology…………….…………………………………………………..11 3.1 Research design……………………………………………………………………….11 3.2 Population and sampling …………………………………………………………… .12 3.4 Data collection………………………………………………………………………...12 3.7 Data analysis and interpretation………………………………………………………13 3.8 Results……………………………………………………………………………….14 Internet banking…………………………………………………………………..14 Mobile banking……………………………………………………………………17 Use of mobile banking by customers…………………………………………...23 Use of internet banking by services……………………………………………..25 3.9 Summary……………………………………………………………………………..27 4.0 Conclusions……………………………………………………………………………27 4.1 Suggestion for further study………………………………………………………..28 4.2 References………………………………………………………………………….29

Abstract
Financial institutions have been in the process of significant transformation. The force behind the transformation of these institutions is innovation in information technology. Information and communication technology is at the Centre of this global change curve of mobile and internet banking in Kenya. Rapid development of information technology has made banking tasks more efficient and cheaper. This study sought to determine the impact of mobile and internet-banking on performance of financial institutions in Kenya where the survey was conducted on financial institutions in Nairobi. The study also sought to identify the extent of use of mobile and internet banking in financial institutions. The study investigated 30 financial institutions. The study found that the most prevalent internet banking service is balance inquiry while the least is online bill payment. Cash withdrawal was the most commonly used mobile banking service whereas purchasing commodities was the least commonly used.

CHAPTER ONE.
INTRODUCTION.

Background of the study
Mobile banking is an innovation that has progressively rendered itself in pervasive ways cutting across several financial institutions and other sectors of the economy. During the 21st century mobile banking advanced from providing mere text messaging services to that of pseudo internet banking where customers could not only view their balances and set up multiple types of alerts but also transact activities...

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