Technology Complexity And Utilization Of Alternative Banking Channels

Abstract

Alternative Banking Channels have been found to have positive benefits for financial institutions. Financial institutions such as commercial banks and insurance companies have employed alternative banking channels to a great extent but SACCOs which are an important part of the financial system have been left behind in this respect. Technology complexity plays a role in the utilization of any type of IT innovation including alternative banking channels. The current study therefore sought to determine the effect of technology complexity on utilization of alternative banking channels among deposit-taking SACCOs in Nyeri County in Kenya. This research used a descriptive cross-sectional survey approach. Deposit-taking SACCOS in Nyeri county were the unit of analysis while managers are the unit of observation. Information was gathered via the use of a questionnaire. Descriptive and correlation analysis was used to analyse data with the help of Statistical Package for the Social Sciences. The study found that technology complexity in the alternative banking channels among deposit-taking SACCOS was average. Technology complexity was significantly associated utilisation of alternative banking channels. The study showed that technology posed a significant barrier to the adoption and utilization of ABCs, especially among older, less literate, and rural members who may lack access to necessary gadgets. SACCOs should therefore organize training sessions and educational workshops for members, particularly targeting older, less literate, and rural members to teach basic digital literacy skills and how to use ABCs effectively