Digital Banking Strategy and Financial Inclusion among Commercial Banks in Kajiado County. A Case of Kenya Commercial Bank in Kajiado County, Kenya

Abstract

Despite the expansive infrastructure of commercial banking in Kenya, a large percentage of the country’s population is excluded from access to formal banking services/products. Further, there is insufficiency of credible information on the manner that digital banking strategies relates to inclusion on access to financial services. Accordingly, this study was in search of bridging the gap with the objective of evaluating the effects of the digital banking strategy on financial inclusion midst commercial banks in Kajiado County (a case of Kenya commercial bank in Kajiado county). This research utilised quantitative methods and espoused descriptive research design. It regarded the 323 Kenya commercial banks outlets (branches and bank agents) in Kajiado County for its target population and obtained a sample size of 179 respondents. A closed-ended questionnaire was administered using drop and pick approach, was developed for gathering data to be acquired from primary sources. This research adopted quantitative analysis approach to yield descriptive statistics and inferential statistics. The study concludes that at 5% error level, digital banking channels, digital financial infrastructure, convenience of digital financial services, have a statistical positive significant effect on financial inclusion among commercial banks in Kajiado county while digital service offering has a statistically insignificant effect on financial inclusion among commercial banks in Kajiado county. The study recommends that the commercial banks in Kajiado should, provide digital banking services to areas that are not easily accessible, acquire adequate infrastructure facilities and adopt efficient technology, offer simple, cost effective and secure services to their customers and provide wide variety of digital service.