STRATEGIC DETERMINANTS OF MOBILE BANKING APPS UPTAKE IN SELECTED BANKS IN NAIROBI CENTRAL BUSINESS DISTRICT KENYA
Abstract
Statement of the Problem: The banking industry has made remarkable improvements in digital banking to provide user-friendly, fast, and efficient financial transactions arising from the evolution of information and communication technologies. Smartphones represent one of the major technological advancements enabling customers to carry out financial transactions remotely. However, as customers increasingly rely on mobile banking apps, various challenges including security concerns, cost barriers, complexity issues, network limitations, and motivational factors influence adoption and sustained usage. Understanding these strategic determinants is crucial for financial institutions to maximize mobile banking app uptake and build strong customer relationships.
Purpose of the Study: The study examined factors influencing mobile banking app uptake in Nairobi CBD banks, guided by TAM and UTAUT. Objectives focused on security, cost, complexity, network availability, and hedonic motivation.
Results: The study found that while banks have implemented functional mobile banking apps earning customer trust, adoption challenges persist including smartphone replacement cost barriers, psychological security concerns despite technical protections, ongoing assistance needs revealing incomplete complexity reduction, persistent network connectivity problems, and hedonic factors operating as supplementary rather than primary drivers.
Recommendation: Banks should optimize costs with transparent fees and device programs, invest in resilient networks and efficient apps, simplify interfaces with customer education, strengthen security via multi-factor authentication, and enhance engagement through referrals. Policymakers should set fee standards, promote digital literacy, and foster public-private partnerships to expand mobile banking access and inclusion in Kenya.
Keywords: Strategic Determinants, Mobile Banking Apps, Uptake, Selected Banks, Nairobi Central Business District
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