Technology Adoption and the Banking Agency in Rural Kenya

Abstract

The paper looks at the ways of approaching the promotion of Mobile and Agency Banking technology adoption and its diffusion in Kenya. Technology adoption climates in developing countries are, by nature, problematic, characterized by poor business and governance conditions, low educational levels, and inappropriate infrastructure. The paper is informed by comparative survey data obtained from SMEs and Bank Agents in Karatina and Likuyani, both districts in rural set ups in Kenya. The study establishes that though a variety of mobile and agency banking services are on offer, only a very small proportion of customers who access it, actually use it. The paper recommends intervention addressing both internal and external factors that inhibit mobile and agency banking technology adoption to the full in rural Kenya and other similar developing countries.

A skills perspective on the adoption and use of mobile money services in Uganda

“…In addition, more technically related skills are required within the application itself, such as scrolling and hierarchical navigation, soft-key mapping, numeric input, and understanding technical language (Medhi et al, 2011). There is broad consensus among scholars that technical know-how is an important factor in the use of technology (Alampay and Bala, 2010;Irura and Munjiru, 2013;Lippert and Forman, 2005;Morawczynski, 2011).…”

Cultural Influence On The Diffusion And Adoption Of Social Media Technologies By Entrepreneurs In Rural South Africa

“…Literature suggests that rural businesses tend to have weaker technology adoption than those located in urban settings (Rcino, Frew and Saez, 2013). According to Irura & Munjiru (2013), culture tends to affect the extent to which small and medium enterprises (SMEs) adopt the use of technology. Al-Jabri and Sohail (2012) support the premise that not many studies investigate the cultural factors that may assist rural business communities to decide on a strategic approach suitable for diffusion and adoptable by rural communities.…”

“…Consumers today are exposed to a wide range of influences that include word-ofmouth communications, network externalities and social signals (Peres, Muller & Mahajan, 2010). Literature further indicates that Technology adoption climates in developing countries are, by nature, problematic, characterized by poor business and governance conditions, low educational levels, and inappropriate infrastructure (Irura & Munjiru, 2013).…”

The effect of banking channels and efficiency indicators on bank profitability

“…In rural Kenya, the installation of two access channels, Mobile banking, and agent banking, is studied by Irura & Munjiru (2013). It concludes that the main factors that encourage the adoption of these financial innovations are: the improvement and guarantee of security, reliability, and trust and the improvement of the propensity to assume risks on the part of SMEs that adopt the technology.…”

“…In addition to the improvement in the political framework, the telecommunications infrastructure, among others. Some publications analyze banking agents as a factor that drives the performance of commercial banks (Barasa & Mwirigi, 2013;Irura & Munjiru, 2013;Kandie, 2013;Shrader & Duflos, 2014;Waleed & Tahir, 2020).…”