COMMUNICATION STRATEGIES FOR ADOPTION OF MOBILE BANKING AMONG ABSA BANK CUSTOMERS, KAKAMEGA BRANCH

Abstract

Mobile banking, as a channel, is offering many benefits for customers and their banks. The internet has been speeding up development of technology in a lot of sectors in the corporate world as well as the banking industry. Despite the advantages the internet offers, most banks face the setback of minimum mobile banking adoption, particularly in Kenya. The study examined the adoption of mobile banking among customers of Absa bank in Kakamega Branch. The following objectives aided the study: to determine the communication strategies employed by Absa bank to convince their customers to take up mobile banking, to assess the relationship between the bank’s communication strategy and the customers’ mobile banking adoption and to examine factors influencing customer perception towards mobile banking adoption. This study was underpinned by three theories, namely: Technology Acceptance Model (TAM), Diffusion of Innovations Theory and Theory of Reasoned Action. The study employed a mixed method research approach which utilized both qualitative and quantitative methods of data collection and analysis. The tools used in the study were an interview schedule and a questionnaire. A target population of the study was 3000 customers and 17 staff members from whom the sample of 341 respondents among the bank customers all 17 staff members were selected. Simple stratified random sampling and purposive sampling were applied in selecting customers and staff members for the study respectively. Quantitative data collected was analyzed using descriptive statistics and presented in form of tables, graphs and charts. The qualitative statistics were analyzed thematically. The findings of this study revealed that good communication strategies influenced mobile banking platform by enhancing the good corporate relationship with customers through social media at 71.8%, mass media communication at 68.9% and word of mouth rated at 84.4%. The study concludes that mobile banking services positively and significantly influences the development of the financial sector in Kenya The study recommended creating awareness and elevating customers’ attitude by making the mobile banking platform affordable, easy and accessible to customers of all segments, easing the customers into the technology rather than forcing it on them while being innovative to stay competitive in the current market.