Factors Influencing Adoption of Emerging Technology of the Banking Sector of Kenya: A Case Study of Commercial Banks in Meru County

Abstract

The general objective of this research was to find out the factors influencing adoption of emerging technology in the banking sector among Commercial Banks in Meru town. The objectives were to determine whether banking regulation, Competition, Security concerns, Management and cost   influences adoption of technology in the banking sector. The target population was 22 Branch managers, 22 IT managers and 22 Operational Managers. Research adopted descriptive research design methodology strategy so as to enable researcher to describe the state of affairs as they were. The data was analyzed using both quantitative data and qualitative data whereby, the quantitative data collected was analyzed by the use of descriptive statistics using SPSS version 22. Qualitative data was arranged into topics that were similar and was presented by use of narration and tables. Multiple Linear Regression analysis was used to show the relationship between the independent variables and the dependent variable and to test the hypotheses. Research revealed that there was a significant relationship between banking regulation and adoption of technology but there was no relationship between, security concerns, competitions, cost and management in banking sector. The study recommends banks should regularly respond to issues arising from banking regulations, competitions, security, cost and management on adoption of technology in order for their function to serve its purpose.