Influence Of Telephone Banking On Competitive Advantage Of Commercial Banks In Kenya

Abstract

Purpose: The current study sought to establish how telephone banking technologies influences competitive advantage of commercial banks in Kenya.
 Methodology: The study was anchored on Disruptive Innovation Theory. A descriptive research design was employed and the target population comprised of 43 commercial banks operating in Kenya where the unit of analysis comprised of 1 Branch Manager, 1 Head of Customer Service, 1 Head of IT Support and 2 Relationship officers from each bank making a total of 215 respondents. The primary data collection instruments used was a semi-structured questionnaire containing both closed and open-ended questions and issued to 215 study population respondents. The collected data was analyzed by employing both inferential analysis and descriptive statistics using Statistical Package for Social Science (SPSS) V25 and Microsoft Excel. A random pilot study carried on 21 respondents was done to assess the data collection instrument on validity and reliability. Out of the issued 215 questionnaires to the respondents, 192 were completed and successfully returned. This equates to 89.3% response rate, an appropriate for conducting analysis and making inferences. Tables and figure formats were used in presenting the study results and findings.
 Results: The study findings were that the adoption of Telephone banking technologies had positive and significant influence on competitive advantage of Commercial banks in Kenya. The study also concluded that telephone banking technologies bears a positive and significant influence on competitive advantage of commercial banks. Remarkably, telephone banking technologies aspects such as establishing a simplified USSD services for customers, creating avenues where customers can access bank’s financial services through agency banking, and having a paybill service that enables customers to conveniently pay their bills directly from their bank account services further enhances the levels of competitive advantage of the commercial banks.
 Unique contribution to theory and practice: The study recommends to the commercial banks to enhance their telephone banking technologies in order to remain competitive in the market.