Chapter One Mercy

8/18/2019 Chapter One Mercy

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CHAPTER ONE

INTRODUCTION

1.0 Introduction

This chapter introduces the problem statement which the research proposes, the objectives

that the research seeks to address, the questions that it seeks to answer and the scope of the

research as well as the significance of the study.

Background of study

The Internet is rapidly turning out to be a tool of worldwide communication. The increasing

use of Internet earlier promoted producers and entrepreneurs to sell their products online. It

has also become an important source of information and knowledge. Due to this, many

banking and finance organizations have come up with the idea of Internet banking or online banking.

Internet banking can be defined as a facility provided by banking and financial institutions

that enable the user to e ecute bank related transactions through Internet !"useel, #$%&'. The

biggest advantage of Internet banking is that people can e pend the services sitting at home,

to transact business. Due to which, the account holder does not have to personally visit the

bank. (ith the help of Internet banking many transactions can be e ecuted by the accountholder. (hen small transactions like balance inquiry, record of recent transaction, etc. are to

be processed, the Internet banking facility proves to be very handy. The concept of Internet

banking has thus become a revolution in the field of banking and finance.

The concept of Internet banking has been simultaneously evolving with the development of

the (orld (ide (eb. )rogrammers working on banking data bases came up with ideas for

online banking transactions, sometime during the %*+$s. The creative processes of

development of these services were probably sparked off after many companies started the

concept of online shopping. The online shopping promoted the use of credit cards through

Internet. any banking organizations had already started creating data ware housing

facilities to ease their working staffs. The development of these databases was widely used

during the development of -T s .!/ource, 0ear1'

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/ometime in %*+$s, banking and finance organizations in 2urope and 3nited /tates started

suggestive researches and programming e periments on the concept of home banking .

Initially in the +$ s when computers and Internet were not so well4developed, home banking

basically made use of fa machines and telephones to facilitate their customers. The

widespread of Internet and programming facilities created further opportunities for

development of home banking 5ell, 6r !#$%&'

In %*+7, the 8ottingham 5uilding /ociety, commonly abbreviated and referred to as the

85/, launched the first Internet banking service in 3nited 9ingdom. This service formed the

basis for most of the Internet banking facilities that followed. This facility was not very well4

developed and restricted the number of transactions and functions that account holders could

e ecute. The facility introduced by 8ottingham 5uilding /ociety is said to have been derivedfrom a system known as )restel, which is deployed by the postal service department of

3nited 9ingdom.

The first online banking service in 3nited /tates was introduced, in :ctober %**;. The

service was developed by /tanford


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transactions are encrypted so your information does not get stolen. This is much safer than

having paper copies

financial reports in a filing cabinet. If you are still unsure about whether or not online

banking is safe, you should definitely talk to a professional at your bank that can e plain the

process to you and ease your fears. It>s a scary thought that, if someone wants our

information, they can get it, but whether you bank online or with a banker, your information

is out there somewhere.

This can mean you use this site to manage loans, digital checks, savings and checking

accounts, as well as pay bills and transfer funds. ost banking websites also allow you to

download statements in )D< format that you can keep for your records if you want to.

?owever, if you are interested in going green and saving the world from the printing of unnecessary paper, you can just view those statements and then delete them from your

computer. (ith online banking, it is also possible for you to go completely paperless, which

is e tremely helpful for the environment !@idgerwood, #$%&'. obile banking is very similar

to Internet banking, e cept you are using a smart phone to bank rather than the computer.

any smart phones have apps that connect you directly to your bank, and give you

information about your accounts, allow you to pay bills or transfer money, and some banks

even allow you to make deposits by taking a picture of the check !=olin, #$%7'.

1.1.1Profi ! of E"uity Bank #!nya

The bank was founded as equity building society 25/ in :ctober %*+; and was originally a

provider of mortgage financing for the majority of customers. ?aving been declared

technically insolvent in %**7, 2quity>s transformation into a rapidly growing microfinance

and then a commercial bank .:n 7% December #$$; 2quity building society was converted to

2quity bank limited. /hares of the stock of equity group holding limited, the parent company

of equity bank, are listed on 8airobi security 2 change !8/2' under the symbol 2AT0. The

group stock is also cross listed on 3ganda security 2 change !3/2' under the symbol 25@.

=urrently, 2quity bank has more than + million customers making it the largest bank in terms

of customer base in -frica. 2quity bank retains a passionate commitment to empowering its

clients to transform their lives and live hoods. Through a business model that is anchored on

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access, convenience and fle ibility, the bank has evolved to become an all4inclusive financial

services provider with a growing pan -frican footprint. In #$%$ 2quity bank established the

2quity Broup


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1.- RE EARCH /UE TION

This research seeks to answer the following questionG

i. (hat are the advantages of internet banking at 2quity 5ank 8aivasha1

ii. (hat are the factors influencing adoption internet banking at 2quity 5ank 8aivasha1

iii. (hat are challenges faced on implementing internet banking at 2quity 5ank

8aivasha1

iv. (hat is the role of internet banking on improving customers services at 2quity 5ank

8aivasha1

1. I NI2ICANCE O2 THE TUD3

This study will benefit a number of groups among them managers of banking institutions

who will use the study to gain an insight into factors that affect the adoption of internet banking. This will in turn help them develop a framework that will facilitate the growth and

e pansion of banking services to consumers.

The government too will benefit from this study. The government will use the findings of this

study to craft appropriate policies that would promote the growth and stability of the banking

institutions.


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1.8 6I7ITATION O2 THE TUD3

The study will cover2quity 5ank 8aivasha and its members. This study will not be used to

generalize the results of the study the whole country as it may not be representative. Due to

limited resources, the sample size is limited to #&H of the target population. This will make

the findings less credible and viable for broad generalizations. The accuracy of the results

will depend on the willingness of the respondents to complete questionnaires. @astly, some

information might not readily given due to its sensitivity

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CHAPTER T9O

6ITERATURE RE:IE9

$.0 T*!ory and E&(irica tudi!s

$.1 T*!ory of ( ann!d %!*a,ior

The T)5 underlying the effort of T"- has been proven successful in predicting and

e plaining human behavior across various information technologies !-jzen, #$%& and -jzen,

#$%7'. -ccording to T)5, a person>s actual behavior in performing certain actions is directly

influenced by his or her behavioral intention and, in turn, is jointly determined by his or her

attitude, subjective norms and perceived behavioral controls toward performing the behavior.

5ehavioral intention is a measure of the strength of one>s willingness to e ert effort while performing certain behaviors. -ttitude !-' e plains a person>s favorable or unfavorable

assessment regarding the behavior in question. s normative belief !nbi' concerning a particular

referent weighted by their motivation to comply with that referent. This is e pressed as

/8JKnbiLmci.)erceived behavioral control !)5=' reflects a person>s perception of the ease

or difficulty of implementing the behavior in question. It concerns beliefs about the presence

of control factors that may facilitate or hinder their performing the behavior. Thus, control

beliefs about resources and opportunities are the underlying determinant of perceived

behavioral control and can be depicted as control beliefs !cbi' weighted by perceived power

of the control factor !pi' in question. This is e pressed as )5=JKcbiLpi. In sum, grounded

on the effort of T"-, T)5 is proposed to eliminate the limitations of the original model in

dealing with behavior over which people have incomplete volitional control !-zjen, #$%&'. In

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essence, T)5 differs from T"- in that it has the additional component of perceived behavior

control.

The last ;$ years because of the improvement information communication technology.

-ccording to =onsoli !#$%7', until the early %*+$s and %**$s there were many regulatory

restrictions which prevented banks to adopt new technology. -s a result there was heavy

reliance on customary branch based delivery of financial services and little pressure to

change. This changed gradually with the deregulation of industry during the %**$s.This

time the increasing importance of Information =ommunication Technology !I=T'

brought stiffer competition and pressure for faster change .Driven by the challenge to

e pand and capture a large part of the banking market, some banks invested in infrastructure

to enlarge their geographical and market coverage .:thers have considered a more

revolutionary approach to deliver their banking services via the internet. Indeed theemergence of internet banking has prompted banks to rethink their Information Technology

!IT' strategies in order to stay competitive. =ustomers today are demanding much more from

banking services. They want new levels of convenience and fle ibility !5irch and 0oung

#$%&G @agoutte#$%&' on top of powerful and easy to use financial management tools,

products and services that traditional banks could not offer.

Internet banking services enables banks to perform transactions such as transferring

funds, payments of bills, access of latest balances, statement viewing, and account detail

viewing, printing and downloading of statements just to mention but a few. This in its self

has been a fundamental shift in the banking delivery channels towards self service channels.

-ccording to Auereshi !#$$*' clients shifted from traditional banking to online banking

system, the main reason being that of perceived ease of use, perceived usefulness and

security provided by online banking.

Despite the fact that the internet has an ever4growing importance in the banking sector, not

all financial institutions !banks' that have adopted internet banking have been successful.

usiime - and "achadan !#$%%' pointed out that in 3ganda, where concept of internet

banking was introduced in early #$$ , adoption and implementation has either been slow in

banks or among customers. In developing countries, internet banking is still in its early

stages. :nly a few banks are developing such services while others merely use (orld (ide

(eb to provide information about products and services !(ungwanitchakorn, #$%&'.

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Deyoung !#$%%' further pointed out that this low adoption is an indication of the hazards of

introducing new products into the market place

$.1.1 E !ctronic %anking !;( ain!d

2 banking is the newest form of delivery of banking services and products. 5rown and olla

!#$%7', for e ample described e banking as an electronic connection between bank and

customer to prepare, manage and control financial transaction. ?owever, a more

comprehensive definition to e banking is given by /ingh and aholtra !#$%&' as the

deployment of banking services and products over electronic communication networks

directly to customers. It should be noted that electronic banking is a bigger platform more

than just banking via electronic means. ?owever the most general type of electronic banking

of our time is internet banking. The term electronic banking can be described in many ways

.In a very simple form, it means the provision of information or services by a bank to itscustomers, via a computer, television, telephone or mobile phone !Daniel, #$%&'. -t an

advanced stage internet banking is called transactional online banking ,because it involves

the provision of facilities such as accessing accounts, transfer of funds and buying financial

products or services online! /athye,#$%7'.The terms internet banking and online banking

are often used in literature to refer to the same thing.

s

website, without the intervention or inconvenience of sending letters, fa es, original

signatures and telephone confirmations. It is the type of services through which bank

clients can request information, and carryout most retail banking services such as balance

inquiry, inter account transfer, bill payments within the comfort of their homes or

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organization !?anemman, %*+;'. Types of internet banking u 0ibin, !#$%$' identified

three functional levels or kinds of internet banking that are currently employed in the market

place and these are informational, communicative and transactional.

Informational4 this can be identified as the first level of internet banking, typically the bank

has marketing information about the bank>s products and services on a standalone server and

the bank>s internal network.

=ommunicative 4 This type of internet banking allows some interaction between the bank>s

system and the customer. The interaction is limited to e4mail account, inquiry loan

application and static file updates !name and address'. It does not permit any funds transfer.

Transactional4This level of internet banking allows bank customer to e ecute transactions.

/ince the path e ists typically between the bank>s server and the outsourcer>s internal

network, this is the highest risk architecture and must have strong controls. =ustomer transactions can include accessing accounts, payment of bills and transferring of funds.

$.$ B!n!fits of int!rn!t %anking

To the bank Internet banking offers many benefits to both the banking institution and the

customer. -ccording to 6ayawardhena and


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The main reasons for this behavior can be found in the consumer behavior theory switching

always requires much time and effort from individual customers. ?e concluded that the

competitive advantage of internet banking is very significant for the survival of the bank.

-ccording to @aukkanen !#$%%', internet banking gives customers access to almost any type

of banking transactions at the click of a mouse, e cept withdrawal #; hours a day. The

branch banking venue is characterized long winding queues and it is quite logical for the

people with knowledge and accessibility to switch over to internet banking !9erem,

#$$+'.Thus he advocated for people to use internet banking because of its convenience.

The greatest benefit of Internet banking is that it is cheap or even free to customers.

9erem !#$$+' also compared the costs associated with traditional branch banking and

internet banking to the customer. ?is conclusions were that online banking charges are much

less than those of traditional banking. ?owever, price seemed to be one factor militatingagainst Internet banking !/athye,#$%& '. Two important factors in the price debate are

on the one hand geographical differences and on the other hand disparities between the costs

of for e ample internet connections and telephone call pricing. It has also been argued

that electronic banks are more likely to change in reaction to customers demands

! adu,#$%&'. Internet banking has the advantage that the customer avoids travelling to and

from a bank branch. In this way, Internet banking saves time and money, provides

convenience and accessibility, and has a positive impact on customer satisfaction

!9arjauloto, #$$7'. =ustomers can manage their banking affairs when they want, and they

can enjoy more.

$.'. Int!rn!t %anking in #!nya


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figures proved that internet banking is taking over the market with a bang. Internet banking

was introduced in 9enya in early #$$7 ./tandard !#$$*' argue that private banks were the

early adopters of Internet banking while the public banks are also beginning to use the same

banking facility. Internet banking in 9enya is concentrated mainly in the commercial banks

and a few building societies which specialize on retail banking.. /ome of the services offered

by the 9enyan commercial banks include the following

N 5alance inquiry for all accounts maintained

N Transfer of funds between accounts in the same bank and across different banks

N 5ank statements inquiries and printing

N 3tility payments e.g. electricity rates, rent or insurance

N OI "- payments

N adoption of internet banking !@aukkanen #$$E'. =onsumers normally adjust to

innovation at slow pace as they need to adjust their e isting preferences and practices

!"amadhan, #$%&'.Thus successful innovation can only start after the initial resistance has

been overcome. usiime !#$%%', -min !#$$E' and Davis !#$%&' identified many factors

which they concluded that they affect customer>s choice in adoption of new technology.

These factors include perceived security, internet e perience factor, internet prestige, internet

skills, marketing e posure, reliability and demographic characteristic.

$.- P!rc!i,!d s!curity<

Internet banking provides alternatives for a faster delivery of banking services to a wider

range of customers !:ghenerukevbe, #$$+'. ?owever, the increasing popularity of Internet

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banking attracts the attention of both legitimate and illegitimate online banking

practices !:ghenerukevbe, #$$+'. personal identity information can cause customers to

lose their confidence and trust in the system and their bank !-ltintas and BPrsakal,#$%$'. In

addition, Internet fraud or deception can negatively affect customers> opinions on the

Internet banking safety and security provided by the banks !-ltintas and BPrsakal, #$%$'.

Thus, perceived security has been widely recognized as one of the main barriers to the

adoption of internet innovation in financial services ! attila and attila, #$%7'. attila and

attila !#$%7' suggest that banks offering Internet banking must first convince their

customers that the internet is secure as a medium.

@aforet and @i !#$%&' discover significant security differences between those customers

using online banking and those who do not, and emphasize that the hackers and fraudaspects are important for the non4users. ?ackers and fraud actions are known as

computing environment crimes !-ltintas and BPrsakal, #$%%'. In a survey of web users,


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e perience, prior technology e perience, and prior personal banking e perience

positively affect consumers> attitude and behavior towards online banking.

$.-.$ Int!rn!t Pr!stig!<

)restige Internet banking includes among other factors such as status and high standing

among peers and self concept. ost banks in =hina have not aggressively promoted

Internet banking to the bank customers. 5ank consumers in =hina cited various types of

costs which have inhibited their use of Internet banking, such as cost of buying a computer,

the monthly fee of an Internet connection, and the monthly fee charged by the bank

!@ichtenstein and (illiamson, #$$ '. ols !#$%&' and /athye !#$%$' studies show that some

consumers could not afford a personal computer !)=' and this prohibited the adoption of

Internet banking.0oung !#$%$' shows that affluent and highly educated groups generally accept changes

more readily. Thus highly educated consumers may be more likely to adopt

Internet banking services than low educated consumers. In addition, using Internet banking

gives these consumers prestige among their peers. It is also part of the social scene of today>s

technology driven society. /arro !#$%7' argues that customer profiles of Internet banking

users are not substantially different between one country and another, as most clients

are young people with a college education, a steady job and income. )rice (aterhouse

=oopers !#$%&' state that the typical Internet banking customer is aged between #&

and 7& years, has medium to high income, and likes to make hisQher own financial

decisions. -l4 /omali, Bholami, and =legg !#$$+' discovered that trust and education

influence customers> attitudes towards using Internet banking. In addition, s !#$%&' study profiled the Internet consumer and found that innovators normally

belong to the high income group.

$.-.' 7ark!ting E;(osur! 2actor<

:ne of the most important contributing factors for adoption or acceptance of any

innovative financial service or product is the creation of awareness among consumers

for the service or product !/uganthi, 5alachandher, and 5alachandran,#$%$'. In this conte t,

"ogers and /hoemaker !#$%7' assert that consumers go through a process of

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knowledge, conviction, decision, and confirmation before they are ready to adopt and

use a product or service. ?oward and oore !#$%&' and Builtinand and Donnelly

!#$%&' emphasize the importance of awareness for the adoption of any new innovation.

/uganthi, 5alachandher, and 5alachandran, !#$%$' indicate that there should be

increasing promotional efforts on the part of banks to create a greater awareness of

Internet banking technology and its benefit in alaysia. )rasad and -rumbaka !#$%&'

show that most customers in India do not know how to become an Internet banking user,

how to use the technology, and hence feel insecure about Internet facility primarily, due

to a lack of marketing effort on the part of banks. /athye !#$%7' also studied the

adoption of Internet banking in -ustralia, and finds that security concerns and a lack of

awareness stand out as the main reasons for the failure to adopt Internet banking by

sample respondents. -l4/ukkar and ?asan !#$%7' note that a lack of awareness reducesthe adoption rate of Internet banking services in the iddle 2ast. =reating greater

awareness by showing customers the benefits of using new systems may encourage

customers to adopt Internet banking transactions !-l4/ukkar and ?asan, #$%&'. @ichtenstein

and (illiamson !#$%&' show that many Internet non4users mentioned not having known or

thought about Internet banking, nor have they seen the technology advertised in

-ustralia. /ome respondents remarked that they did not bank through the Internet

because they believed Internet banking is too complicated or of little interest. This

lack of awareness suggests the need for banks to create interest in Internet banking,

perhaps through an aggressive marketing campaign targeting non adopters !@ichtenstein

and (illiamson, #$$ '.

$.-.) Int!rn!t ki s 2actor<

-ny new technology is usually picked up by the early adopters who have Internet

access and knowledge about the facilities such as those provided by a bank on the

Internet !)rasad and -rumbaka, #$$*'. ?owever, some consumers do not know how to

become an Internet banking user, and some consumers do not have the required )= skills and

facilities needed to do Internet banking !)rasad and -rumbaka, #$$*'.

9im, (idows, and 0ilmazer !#$%%' note that some consumers have more ability to use

banking technology and computer software for managing money than other consumers.

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=onsumers with increased computation ability may adopt Internet banking more easily

and their ability may also improve their efficiency in the use of Internet banking. In

addition, they may need to invest less time and money to learn Internet banking !9im

et al., #$%%'. =onsumers who have no e perience and skill in the use of banking technology

and computer software may not recognize the benefits of Internet banking. ?owever, these

customers may hesitate to adopt Internet banking as they need to invest more time and

money to learn Internet banking !9im et al., #$%&'.

/everal researchers have discussed about the virtual requirement of computer ownership and

operational skills for Internet adoption. s !#$%$' study reveal that the

adoption of Internet banking depends on the compatibility of the new channel with the

individual>s personality, computer skills, and the opportunity to try the service offered.

Berrard and =unningham !#$77' find that consumers who are non4adopters of Internet

banking could be differentiated by their low !or poor' computation proficiency

and computer skills. In @ichtenstein and (illiamson>s study !#$%7', the authors pointed out

that a person>s Internet self4efficiency, such as Internet skill, will affect the decision

whether or not to adopt Internet banking. Internet users generally e pressed confidence

in their ability to use the Internet M a confidence acquired from multiple positive

e periences and acquired familiarity with the Internet channel !@ichtenstein and

(illiamson, #$%7'. The results show that the non4user of Internet banking services

have lower Internet skills, lack of access, and lack of e perience !@ichtenstein and

(illiamson, #$%&'. knowledge

and skills about the Internet and Internet banking are important to the adoption of

Internet banking. If the knowledge and skills about the Internet and Internet banking are low,

the adoption rate will be low. The more knowledge and skills a consumer possesses about

Internet banking, the easier it is for the consumer to utilize Internet banking !)olatogu

and 2kin, #$%%'.

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$.-.- R! ia%i ity 2actors<

@eelapongprasut, )raneetpolgrang, and )aopun !#$%&' indicate that in Thailand, the

three most important dimensions of quality in Internet banking are reliability,

serviceability, and durability. "eliability involves consistency of performance and

dependability which means that the banking firm performs the services right the first

time and honours its promises !9han, #$$*'. "eliability involves accuracy in

billing and information, keeping records correctly, performing the service at the

designate time !Oeithaml, )arasuraman, and alhotra, #$%&G c9inney, 0oon, and

Oahedi, #$%&'. "eliability is associated with the technical functioning of the

internet banking site, particularly the e tent to which the site is available and functioning

properly. /athye !#$%%' and )olatoglu and 2kin !#$%%' find that the reliability dimension isan important factor for consumers who use electronic banking.


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demographic characteristics to offer the correct range of service products. /everal

studies have been conducted to profile the Internet consumer>s demographic

characteristics and the results of these studies suggest that innovators who belong to

the high income category are normally initial users of the Internet !


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Internet users. any consumers believe that they are vulnerable to identity theft while using

online banking services !@ittler and elanthiou, #$%&'.

$. .$ 2inancia risk

It is defined as the potential for monetary loss due to transaction error or bank account

misuse. -ccording to 9uisma et al. !#$%7', many customers are afraid of losing money while

performing transactions or transferring money over the Internet. -t present online banking

transactions lack the assurance provided in traditional setting through formal proceedings and

receipts. Thus, consumers usually have difficulties in asking for compensation when

transaction errors occur !9uisma et al., #$%7'.

$. .' ocia risk

This refers to the possibility that using online banking may result in disapproval of one>s

friendsQfamilyQwork group. It is possible that one>s social standing may be enhanced or

diminished depending on how online banking is viewed. It may well be that people have

unfavorable or favorable perceptions of online banking that in turn affect their views of

adoptersG or, alternatively, not adopting online banking may also have negative or positive

connotations.

$. .) Ti&!=con,!ni!nc! risk

It may refer to the loss of the time and inconvenience incurred due to the delays of receiving

the payment or the difficulty of navigation !finding appropriate services and hyperlinks'. Two

leading causes of dissatisfying online e periences that may be thought of as a

timeQconvenience risk include a disorganized or confusing (eb site and pages that are too

slow to download !


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$. . P!rc!i,!d %!n!fit

:nline banking has recently come to be considered as one of the most effective banking

transaction methods !?uang et al., #$%&' because it possesses many advantages which offline

banking channels cannot offer. Thus, online banking managers aim to utilize these

advantages to increase the online banking adoption rate. 5ased to a certain e tent on reasons

offered by @ee !#$$+', there are two main types of perceived benefits, which can be

categorized as direct and indirect advantages. Direct advantages refer to immediate and

tangible benefits that customers would enjoy by using online banking.


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al., #$%%'. This model hypothesizes that system use is directly determined by behavioral

intention to use, which is in turn influenced by users> attitudes toward using the system and

the perceived usefulness of the system. -ttitudes and perceived usefulness are also affected

by perceived ease of use. )erceived usefulness, reflecting a person>s salient belief in the use

of the technology, will be helpful in improving performance. )erceived ease of use is a

person>s salient belief that using the technology will be free of effort !Taylor and Todd,

#$%&'. The appeal of this model lies in that it is both specific and parsimonious and displays

a high level prediction power of technology use. These determinants are also easy for system

developers to understand and can be specifically considered during system requirement

analysis and other system development stages. These factors are common in technology4

usage settings and can be applied widely to solve the acceptance problem !Taylor and Todd,

#$%&'.

=onceptual framework.

22

Perceivedeasyaccessibility

Perceivedlow cost

Perceivedsecurity

Perceivedease of use


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23

Succeandgrow

!e avioralintentionto use

Perceivedsatisfaction

"ctualusage

Perceived

usefulnessPerceivedconvenience

PerceivedSu##ort


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CHAPTER THREE

RE EARCH DE I H AND 7ETHODO6O 3

'.1 Introduction

This chapter describes the research design, data collection procedure and data analysis procedure

that will guide the study. The chapter presents the methodology which will be used to carry out the

studyG it describes the type and source of data, the target population and sampling method and the

techniques which will be employed in selecting the sample size of the study. The chapter shows

instruments to use in the gathering of data, measurement and analysis of the data that will be

collected and the type of questionnaire to be used.

'.$ R!s!arc* tudy D!sign

- research design is the overall scheme used by the researcher as an outline plan to collect and

analyze the collected data in order to answer the research questions. This research study will apply a

descriptive research design. Descriptive research is a technical method of research in which data is

collected and analyzed in order to describe the current term or relationship concerning a problem the

way they appear to be as well as generate solutions to the problems. It presents actual

characterization of a state as it naturally appearsG this method can be viewed appropriate because it

allows for broader study of the case and leads to a comprehensive fact finding study, the designenables the researcher to access sufficient response from the respondents.

'.' Targ!t Po(u ation

-ccording to =rall !#$$&'.Target population is a universal set of all members of real population or

hypothetical set of people, events or objects to which I wish to generalize the events. I target a

population of 7$ bank customers and %& employees at the bank. 5elow is a summary illustration of

the population of interest.

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Ta% ! '.1 Targ!t Po(u ation

Po(u ation Cat!gory 2r!"u!ncy P!rc!ntag!

5ank customers 7$ . E

5ank employees %& 77.77

Tota )- 100

ourc!> o?n @$01

'.) a&( ! D!sign

- sample is a small proportion of targeted population selected using some systematic form /ampling

is defined as the process by which relatively small number of individuals, objects, or events are

selected and analyzed in representative capacity of the entire population from which was selected.

The method of sampling I suggest to apply in this research is stratified random sampling. stratified

random sampling will be applied to ensure that certain sub groups are well represented in the sample

in proportion to their numbers in the population itself hence avoid omission or bias. In this

technique, the population is stratified into a number of non4overlapping strata and sample items is

selected from each stratum. -gain the population of reference is very large and not homogeneous in

roles hence conform to the suitability of applying stratified random sampling technique, an

e emplified summary of the considered sample was as shown in the table below

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Ta% ! '.$ a&( ! i !

Po(u ation Cat!gory 2r!"u!ncy P!rc!ntag!

5ank customers 7$ . E

iddle entrepreneurs %& 77.77

Tota )- 100

ourc!> o?n @$01

'.- DataCo !ction Instru&!nts and Proc!dur!s

The study will use questionnaires to collect firsthand data, the %$$ questionnaires will be delivered

to the %$$ respondents in person and by hand after few issuing guidelines and will be collected after

a specified and agreed period of time with the respondents, secondary data will be acquired from the

companies department sections of sales, marketing and accounts.

'.-.1 /u!stionnair!

Auestionnaire is the instrument which is used to gather information from the respondents, a

questionnaire is designed based on study variables and framed on the basis of study objectives and

questions. It addresses all issues that are needed for the purpose of giving credible information. The

questionnaire has both pre4determined structured and semi4structured questions whereby

respondents are served with closed and open ended questions and given a chance to fill. 5efore

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being administered to the respondents to respond, the questionnaire are pretested on three colleagues

as respondents, however the results are not included in the final analysis of the research.

'.-.$ R! ia%i ity and :a idity

To ensure that the questionnaires are valid hence reliable results, I will request some of my

colleagues to e amine them in order to establish whether its instruments were reliable and objectives

of the study are valid. The questionnaires will also be pre4tested on four respondents of which the

findings will not be included in the final study. -fter correction and further consultation on that

effect, instrument results will show that the questionnaire can be applied for the study.

'. Data Ana ysis 7!t*ods.

'. .1 /ua itati,! Ana ysis

Aualitative data analysis involves analysis of descriptive data, the descriptive data is analyzed

qualitatively through content analysis and evaluation of open ended questions and the results are

provided inform of illustrative remarks.

'. .$ /uantitati,! Data Ana ysis

Auantitative data analysis involves analysis of arithmetic data or and calculation of numeric>s such as

percentages, volume, variance, and frequencies were applicable. The information collected is then

presented in tables and figures.

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APPENDI I<

6AI#IPIA UNI:ER IT3

2ACU6T3 O2 BU INE

PARTICIPANT /UE TIONNAIRE

D!ar R!s(ond!nts t*is "u!stionnair! is %!ing ad&inist!r!d to co !ct data on t*! to(ic

factors inf u!ncing ado(tion of int!rn!t %anking< A Cas! tudy of E"uity

BankNai,as*a Branc*F. 3ou ar! kind y r!"u!st!d to (artici(at! in t*is r!s!arc* and

(ro,id! *on!st infor&ation on t*! "u!stions ask!d. 3our r!s(ons!s ar! i&(ortant and

t*! infor&ation ?i %! strict y confid!ntia . P !as! co&( !t! t*is "u!stionnair! in

accordanc! ?it* instructions gi,!n. T*ank you ,!ry &uc* for your coo(!ration.

2ACTOR IN26UENCIN ADOPTION O2 INTERNET BAN#IN IN > A CA E

TUD3 O2 E/UIT3 BAN# NAI:A HA BRANCH

PART I @E/UIT3 BAN# CU TO7ER

A DE7O RAPHIC DATA

%. (hat is your gender1

a' ale ! ' b'


29/34

a' arried ! ' c' (idow!er' ! '

b' /ingle ! ' d' separate ! '

;. :ccupation

a' =ivil servant ! ' b' /elf4employed ! '

c' )rivate sector ! ' d' other !specify'RRRRRRRRRRRRR

B THE RO6E O2 INTERNET BAN#IN ON THE RO9TH O2 ECONO739ITH RE2ERENCE TO E/UIT3 BAN#

%. Do you have knowledge on the Internet 5anking in 2quity 5ank and how it operates1

a' 0es ! ' b' 8o ! '

#. ?ave you ever used Internet 5anking from 2quity 5ank1

a' 0es ! ' b' 8o ! '

7. If yes, for how long have you been using Internet 5anking1

a' @ess than % year ! ' b' #47 years ! '

c' 74& years ! ' d' over & years ! '

;. Do you think there has been an improvement in your business since you started using

Internet 5anking1

a' I strongly -gree ! ' c' I strongly Disagree ! '

b' I -gree ! ' d' I Disagree ! '

&. If there has been an improvement, to what e tent has the Internet 5anking helped you to

improve your business1

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a' To great e tent ! ' c' To very less e tent ! '

b' To @ess 2 tent

Do you face any challenges while using Internet 5anking1

a' 0es ! ' b' 8o ! '

E. If yes, what are the challenges1

a' ?igh cost ! ' b' very slow ! '

c' /ocial problem ! ' d' lack of knowledge required ! '

+. The cost incurred is very high

/trongly

-gree

-gree 8ot sure Disagree /trongly

Disagree

Tick

*. =ustomers lack required knowledge of the process

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/trongly

-gree

-gree 8ot /ure Disagree /trongly

Disagree

APPENDI II

6AI#IPIA UNI:ER IT3

2ACUIT3 O2 BU INE

BACHE6OR O2 CO77ERCE

PARTICIPANT /UE TIONNAIRE

Dear "espondents, this questionnaire is being administered to collect data on the topic

S A CA E TUD3

O2E/UIT3 BAN#NAI:A HA BRANCH

PART II @E/UIT3 BAN# O22ICIA6

DE7O RAPHIC DATA

%. (hat is your gender1

a' ale ! ' b'


32/34

#(hat is your age bracket

a' @ess than #$ years ! ' b' #%4 7$ years ! '

c' 7%4 ;$ years ! ' d' ;%4 &$ years ! '

e' &%4 $ years ! ' f' -bove $ years ! '

7. arital status

a' arried ! ' b' single ! '

c' (idow!er' ! ' d' separate ! '

;. (hat is your position in 2quity 5ank1

a' 24banking officer ! ' b' Beneral anager ! '

c' information officer ! ' d':ther !specify'

.......................................................................................................................................................................................................................................

THE RO6E O2 INTERNET BAN#IN ON DE:E6OP7ENT O2 THE ECONO73

9ITH RE2RENCE TO E/UIT3BAN#

%. Do you think there has been an improvement in businesses of your customers who access

your internet banking1

a' I strongly agree ! ' b' -gree ! '

c' I Disagree ! ' d' I strongly Disagree ! '

#. If there has been an improvement, to what e tent has the Internet 5anking helped your

customers improve their businesses1

a' To great e tent ! ' b' To less e tent ! '

c' To very less e tent ! '

7. Do you think your customers face any challenges while accessing your internet banking1

a' 0es ! ' b' 8o ! '

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;. If yes, what are the challenges1

a' ?igh cost ! ' b' Fery slow ! ' c'

/ocial problem ! ' d' lack of knowledge required ! '

%7. The cost incurred is very high

/trongly

-gree

-gree 8ot sure Disagree /trongly

Disagree

Tick

%;. =ustomers lack required knowledge of the process

/trongly

-gree

-gree 8ot /ure Disagree /trongly

Disagree

Tick

INTER:IE9 UIDE

%. (hat are the factors influencing adoption of internet banking at 2quity 5ank1RRRRRRRRRRRRRRRRRRRRRRRR....

#. (hat challenges do you face while accessing internet

banking1....................................................................................................................

7. ?ow does internet banking improves your business since you started accessing

it1...............................................................................................................................

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;. Do you have knowledge on the internet banking at 2quity

bank1......................................................

&.

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