Virtual banking adoption by SACCOs in the face of Covid-19 pandemic - a case study of Nairobi County, Kenya

Omwando KJ, Moturi CA. "Virtual banking adoption by SACCOs in the face of Covid-19 pandemic - a case study of Nairobi County, Kenya." The Strategic Journal of Business & Change Management. 2021;8(4):1-13.


The outbreak of COVID-19 pandemic saw overwhelming effects on consumers’ buying behavior globally, with economic productive activities shifting from offline to online. As a result, many business leaders were left with no option other than adopt the use of Information Technology to ensure business operations continuity, enhance efficiency as well as sustainability. In Kenya, unlike most commercial banks, Saccos have largely been left behind in embracing new banking technologies such as agency banking, internet banking, or mobile banking. Therefore, the use of paperwork, physical and in-person meetings to conduct business has remained widespread amongst many Saccos in the country, before COVID 19 that forced Saccos to shift to virtual banking as an effective alternative, toward addressing their customers’ needs while ensuring safety. This study examined the adoption of Mobile Banking models and Virtual Banking technologies and innovations to establish the factors influencing their adoption by potential users. The study also explored the adoption of Virtual banking amongst Saccos in Kenya, investigating the electronic delivery channels used, and their suitability. The study objectives were accomplished through an exploratory and descriptive approach based on ways of improving access to credit through relationships between Sacco and their clientele in Kenya through the adoption of Virtual Banking. The data used was collected from SACCO-based respondents who included Sacco ICT officers, managers, and members using questionnaires. Data analysis was done using the Statistical Package for Social Sciences (SPSS). The study established that there was wide adoption of various Mobile Banking models and technologies to realize virtual banking adoption by Saccos. Most Saccos were found to favor the Joint venture model and the non-bank-driven model. The extent of adoption of virtual banking amongst bank clientele was found to be influenced by social, economic, and technological factors. The study recommended that Saccos should consider sharing information and technologies across various networks as this is likely to lead to much more gains in adopting technologies that would improve their sustainability as while fostering better customer experience.


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