Application of Technology Acceptance Model (TAM) in M-Banking Adoption in Kenya

Lule I, Omwansa TK, Waema TM. "Application of Technology Acceptance Model (TAM) in M-Banking Adoption in Kenya.". 2012.


Mobile phones with Mobile Commerce technology are becoming more readily available in Kenya. Similarly many financial institutions and mobile phone service providers are teaming up to provide banking services to customers via the mobile phone. However the number of people who choose to adopt or use such technologies is still relatively low. Therefore there is need to assess the acceptance of such technologies to establish factors that hinder or promote their acceptance. This study applied Technology Acceptance Model to examine the factors that influence the adoption of M-banking in Kenya. The study specifically focused on the evaluation of MKesho, an M-banking application in Kenya. A survey was conducted to gather data which was coded in SPSS 16. Confirmatory Factor Analysis was used to analyze the data and Structural Equation Modeling using Analysis of Moment Structures was used to validate the research model. Out of a total of 450 questionnaires distributed to M-Kesho users, 395 were returned and validated. The analysis revealed that Perceived Ease of Use, Perceived Usefulness, Perceived Self Efficacy and Perceived Credibility significantly influenced customers‘ attitude towards usage of M-banking. The results of the data analysis contributes to the body of knowledge by demonstrating that the above factors are critical in attitude towards usage of M-banking in a developing country context. The implications of the results form a good basis for providing practical recommendations to the banking industry, and directions for further work

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