An Investigation into Customers' Requirements for Electronic Banking

Abstract

There is a general consensus that governments, businesses and all individuals need to harness the power of Information and Communication Technology (ICT) and ICT enabled services for wider access and improved welfare standards. The requirements of MFI clients in regard to electronic banking (e- banking) have received limited attention in the reviewed literature. In Kenya, little is known and understood about the customers' requirements with emergence of e-banking. In this paper, the authors investigate the MFIs clients' e-banking requirements to align with the MFIs preparedness for sustainable success. Besides, it narrows the digital divide in provision of financial services to Kenyans. Findings from this study indicate that in Kenya, MFI clients are ready for e-banking. The paper finally recommends some possible solutions that MFIs could embrace towards successful implementation of e-banking.

E-Readiness Assessment Information System. A Case Study of Microfinance Institutions (MFIs) in Kenya

“…Earlier studies in the area of e-banking, authors define e-banking as systems that facilitate MFIs customers to access accounts, conduct business or acquire information on financial products and services through a public or private network, the internet or mobile phone (Chavan, 2013;Mwongeli et al, 2017). The use of Automated Teller Machines (ATMs) is one example where a customer can access bank account by swapping a debit or ATM card in a machine and entering the PIN assigned to the customer by the bank.…”

“…Ebanking realizes greater level of customer contentment and retention if tailored to exact requirements of MFIs clients' base. In particular Kenya's MFIs have been spending in ICTs in their processes to achieve better level of e-Readiness for efficacy and efficiency services (Mwongeli, Moturi, & Muketha, 2017). E-banking is the only way to stay connected to the customers at any place and any time.…”

“…E-banking is the only way to stay connected to the customers at any place and any time. It results in high performance in the banking industry through faster delivery of information and services among the customers and service provider (Chavan, 2013;Mwongeli et al, 2017;Padaachi & Seetanah, 2010). E-Readiness has been defined as the degree in which a country, business enterprises, or community is prepared and capable to participate in the networked world in their degree of relative knowledge and preparedness in most of the essential areas for the acceptance and use of ICTs and ICT applications (CID, 2001).…”

“…This paper proposes an assessment information system for e-Readiness of MFIs in Kenya. The proposed information system is validated with the analysis of data collected from Microfinance institutions and their clients in Kenya (Mwongeli & Christopher, 2015;Mwongeli et al, 2017). Using categories and indicators proposed in our earlier studies Mwongeli & Christopher 2015, information system was developed.…”