Internet Banking: An Analysis of Factors Influencing Internet Banking Use in Kenya

Internet Banking is used by financial institutions such as commercial banks as a way in which its clients can access information and transact business without necessarily visiting their banks. However, setting up Internet Banking (IB) infrastructure by the commercial banks is an expensive endeavour and for it to be worthwhile, its use should be guaranteed. The objective of this study was to establish factors that influence customers’ use of IB in Kenya. A descriptive survey research design was adopted with the target population being customers of selected commercial banks within Eldoret town, Kenya. The study revealed a general lack of: customer awareness on IB services, inadequate internet security and internet infrastructure as well as demographic characteristics as major impediments to its use. Thus promotion of relatively new banking products to existing customers, improvement in internet security and infrastructure are vital. The book presents a useful resource to commercial banks and other institutions willing to implement technological innovations when providing services to customers.