Information Technology Usage and Customer Acceptance in the Banking Sector: a Case Study of Guaranty Trust Bank, Kigali, Rwanda

INFORMATION TECHNOLOGY USAGE AND CUSTOMER ACCEPTANCE IN THE BANKING SECTOR: A CASE STUDY OF GUARANTY TRUST BANK, KIGALI, RWANDA

KWIZERA JOHN MIS/0067/13

A Research Project Submitted in Partial Fulfillment for the Award of the Degree of Master of Science in Information Science (Information and Communication Technology Option) of Mount Kenya University

DECEMBER 2016 DECLARATION

This research proposal is my original work and has not been presented for a degree in any other University or for any other award.

Student Name: Kwizera John Registration number: MIS/0067/13 Sign______Date______

I confirm that the work reported in this research proposal was carried out by the candidate under my supervision.

Name: Prof. Raymond Wafula Ongus, PhD

Sign______Date______

DEDICATION

This work is dedicated to my wife Mrs. Mbabazi Janet and my children Akaziguye Faith, Kwizera Prince Emmanuel, Kwizera Prince Samuel and my sister Mukarukundo Immaculate, for their love, care and commitment towards my success.

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ACKNOWLEDGEMENT

The success of this research was a result of many people’s efforts that deserves appreciation. I would like to express my deep appreciation to my supervisor Professor Raymond Wafula Ongus and Mr. Philip Mbugua, for their support, guidance and encouragement over the past months to accomplish this research.

My sincere thanks go to the staff of Mount Kenya University Kigali Campus, whose analytical skills and knowledge enabled me to produce this work. I convey my sincere thanks to MIS students, especially 2013-2014 intake, for their good cooperation and advice.

My heartfelt gratitude goes to my late father; Mr. Magenda Canizio and my late mother Mrs. Mukakimenyi Mary Josephine for their love, financial and moral support they offered me since childhood. I am forever grateful to my uncle Mr. Bahorana Augustin and family for their endless assistance.

Finally, my sincere thanks go to my family who has been helpful. Their love and support plays a big role towards the success of my education.

ABSTRACT

The study was inspired by the arising issues of concern related to why customer accounts were inactive. It was not known whether the customers really enjoyed using information technology to access their accounts or whether there were various challenges experienced in the process of using the services. The aim of the study was to examine effect of Information technology usage on customer acceptance at GTBank, Kigali Rwanda. The study would provide knowledge, to improve on information technology and design more strategies for better planning. It would also be helpful to customers by widening knowledge and understanding of information technology available. The research design was a case study, with target population of 20,335 customers who used either ATM, Internet banking or mobile banking technologies, 3 e-banking staff and 5 GTBank branch managers. The total sample size was 401 respondents, selected through simple random sampling and purposive sampling. Data was collected by means of questionnaires and interviews. A pilot study was carried out at I&M bank, which had similar information technology usage by customers for testing the reliability of the questionnaires. The data analysis tool used was Statistical Package for Social Sciences (SPSS) version 16.0. Data analysis methods included frequencies, percentages, tables, weighed means, standard deviations and multiple regression analysis to determine the correlation between variables. Findings revealed that Mobile banking and ATM were mostly used more than Internet banking, depending on features of use and security. ATM features were more accepted compared to Internet banking and Mobile banking features. Multiple regression analysis found R the coefficient of correlation to be 0.927 signifying a very strong positive correlation between information technology and customer acceptance. The P- value was found to be 0.001, hence statistically significant at the 95% confidence level. The coefficient of determination R2 = 0.859 indicated that 85.9% of the variability in customer acceptance depended on stochastic model developed, whereas the remaining 14.10% was attributed to factors beyond the control of the study. The study recommended trainings of customers and awareness campaigns about Internet banking technology so as to promote technological knowhow; high speed of the Internet, solved by broadband and 4G LTE to increase the number of customers using it in time. The study also recommended the provision of security awareness, to increase trust of customers using information technology provided by GTBank.

TABLE OF CONTENTS

DECLARATION ...... i

DEDICATION ...... iii

ACKNOWLEDGEMENT ...... iv

ABSTRACT ...... v

TABLE OF CONTENTS ...... vi

LIST OF TABLES ...... ix

LIST OF FIGURES ...... x

LIST OF ABBREVIATIONS AND ACRONYMS ...... xi

OPERATIONAL DEFINITIONS OF KEY TERMS ...... xiii

CHAPTER ONE: INTRODUCTION ...... 1 1.0 Introduction ...... 1 1.1 Background of the Study ...... 1 1.2 Problem Statement ...... 5 1.3 Objectives of the Study ...... 6 1.3.1 General Objective ...... 7 1.3.2 Specific Objectives ...... 7 1.4 Research Questions ...... 7 1.5 Significance of the Study ...... 7 1.6 Limitations of the Study...... 8 1.7 Scope of the Study ...... 8 1.7.1 Content Scope ...... 8 1.7.2 Geographical Scope ...... 9 1.7.3 Time Scope ...... 9 1.8 Organization of the study ...... 9

CHAPTER TWO: REVIEW OF RELATED LITERATURE ...... 10 2.0 Introduction ...... 10 2.1 Theoretical Literature ...... 10

2.1.1 Information Technology in Banking ...... 10 2.2 Empirical Literature ...... 14 2.2.1 Internet Banking and Customer Acceptance ...... 14 2.2.2 Mobile Banking and Customer Acceptance ...... 19 2.2.3 Automated Teller Machine and Customer Acceptance ...... 23 2.2.4 Customer Acceptance of Information Technology ...... 26 2.3 Critical Review and Research Gap Identification ...... 32 2.3.1 Critical Review ...... 32 2.3.2 Research Gap Identification ...... 34 2.4 Theoretical Framework ...... 34 2.5 Conceptual Framework ...... 38 2.5.1 Independent Variables ...... 38 2.5.2 Dependent Variable ...... 40 2.6 Summary ...... 40

CHAPTER THREE: RESEARCH METHODOLOGY ...... 41 3.0 Introduction ...... 41 3.1 Research Design...... 41 3.2 Target Population ...... 41 3.3 Sample Design ...... 41 3.3.1 Sample Size ...... 41 3.3.2 Sampling Techniques ...... 42 3.4 Data Collection Methods ...... 42 3.4.1 Data Collection Instruments ...... 43 3.4.2 Administration of Data Collection Instruments ...... 43 3.4.3 Pilot Study ...... 43 3.4.4 Reliability ...... 44 3.4.5 Validity ...... 45 3.5 Data Analysis Procedure ...... 45 3.6 Ethical Considerations ...... 46

CHAPTER FOUR: RESEARCH FINDINGS AND DISCUSSION ...... 47 4.0 Introduction ...... 47

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4.1 Demographic Characteristics of Respondents ...... 47 4.1.1 Age Distribution of Respondents ...... 47 4.1.2 Gender distribution ...... 49 4.1.3 Education Level ...... 49 4.1.4 Language Proficiency Distribution of Respondents ...... 50 4.1.5 Experience of Information Technology Usage ...... 50 4.2 Usage of Information Technology ...... 51 4.4 How Customer Acceptance was Affected by Information technology at GTBank ...... 58 4.4.1 Findings from Interview Guide ...... 60 CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS ...... 64 5.0 Introduction ...... 64 5.1 Summary of Findings ...... 64 5.1.1 Usage of Information Technology ...... 64 5.2 Conclusion ...... 65 5.3 Recommendations ...... 66 5.4 Suggestions for Further Study ...... 66

REFERENCES ...... 67 APPENDIX A: INTRODUCTION LETTER SHOWING RESEARCH AUTHORIZATION ...... 77

APPENDIX B: QUESTIONNAIRE FOR CUSTOMERS OF GTBANK 78 APPENDIX C: QUESTIONNAIRE FOR GTBANK CUSTOMERS TRANSLATED INTO KINYARAWANDA ...... 82 APPENDIX D: INTERVIEW GUIDE FOR GTBANK E-BANKING STAFF ...... 87 APPENDIX E: INTERVIEW GUIDE FOR GTBANK BRANCH MANAGERS ...... 88

APPENDIX F: CITY OF KIGALI SECTOR MAP...... 89

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LIST OF TABLES

Table 3.1 Sample size Determination for Customers.………………………………..….42 Table 3.2 Reliability statistics for pilot study of 5 respondents………………………...44 Table 4.1 provides the age of respondents based on Questionnaire……………………..48 Table 4.2 Gender distribution of respondents……………………………………………48 Table 4.3 Education Level of Respondents………………………………………….49 Table 4.4 Language spoken by respondents……………………………………………..50 Table 4.5 Experience of Customer Technology Usage…………………………………51 Table 4.6 How often Respondents Used the Technologies at GTBank…………………51 Table 4.7 Factors that Promotes Usage of Technology in GTBank……………….……52 Table 4.8 Ranking Information Technology………………………………………...…..52 Table 4.9 Views of customers regarding ATM at GTBank……..…………….……..…..53 Table 4.10 Views of customers regarding Internet Banking at GTBank……………..…55 Table 4.11 Views of customers regarding Mobile Banking at GTBank………………...57 Table 4.12 Multiple Regression Analysis Output………………………………………59 Table 4.13 Regression model summary……………..…………………………………..59 Table 4.14 Measures put in place to address problems in the using ATM machine…….61

LIST OF FIGURES

Figure 1.1 Login To GTBank GAPS…….………………………………………………..4 Figure 1.2 Architecture of Online Banking Application……….…………………………5 Figure 2.1 ATM Network…………………………………………………………….....11 Figure 2.2 Mobile Bank Network……………………………………………………....13 Figure 2.3 How ATM works……………………………………………………………..23 Figure 2.4 Unified Theory of Acceptance and Use of Technology……………………...36

Figure 2.5 Updated DeLone & McLone Information System Success Model……..……37

Figure 2.6 Conceptual Framework………………………………………………………38 Figure 4.1 Age distribution of respondents ……………………………..………………48

LIST OF ABBREVIATIONS AND ACRONYMS

4G LTE Fourth Generation Long-Term Evolution ATM Automated Teller Machine BI Behavioral Intention BNR Banque National du Rwanda CSE Computer Self-Efficacy E-banking Electronic banking GAPS GTBank Automated Payment System GCB Ghana Commercial Bank Ltd GTBank Guaranty Trust Bank HTTPS HyperText Transfer Protocol Secure IBG International Bank of Ghana ICT Information and Communication Technology IT Information Technology MDS Multidimensional Scaling MKU Mount Kenya University PC Perceived Credibility PEOU Perceived Ease Of Use PIN personal identification number

PU Perceived Usefulness SEM Structured Equation Modeling SMS Short Messaging Service SSTs Self-service Technologies TAM Technology Acceptance Model

TPB Theory of Planned Behavior UBA United Bank of Africa USA United States of America UTAUT Unified Theory of Acceptance and Use of Technology WAP Wireless Access Protocol

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OPERATIONAL DEFINITIONS OF KEY TERMS

Bank is a financial institution licensed by the Banque National du Rwanda (Central Bank of Rwanda), that provides banking technologies to the users referred as GTBank customers.

Banking Sector in Rwanda is the sector that consists of both private and public banks that are involved in financial transactions to Customers and edge in providing banking technologies for quality, fast, and security services to the finances of the Customers.

Banking Technology refers to the use of sophisticated information and communication technologies together with computers to enable banks including GTBank, to offer more efficient services to customers, in a secure, reliable, affordable manner and sustain competitive advantage over other banks.

Customer Acceptance is the extent of assent or endorsement with which a bank technology user adopts the information technology channel of financial transactions offered by GTbank.

Customer is a user of banking technologies to satisfy needs of financial transactions from GTbank.

Guaranty Trust Bank (GTBank) is a financial institution operating in Rwanda with branches in Kigali City, providing banking technologies towards satisfying Customers’ financial transaction needs.

Information Technology is the storing, protecting, processing, transmitting and later retrieving information as necessary by GTBank customers and staff to help in enhancing efficiency and improving productivity through automation of various functions.

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Information Technology usage is use of systems (especially computers and telecommunications) for storing, retrieving, and sending information by both staff and customer of GTBank.

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CHAPTER ONE: INTRODUCTION

1.0 Introduction

The study was generally about the usage of information technology and its effect on customer acceptance in the banking sector in Rwanda, by considering Guaranty Trust Bank, Kigali, Rwanda. This chapter presents introduction, background to the study, problem statement, study objectives, the research questions, and significance of the study, study limitations and scope as well as organization of this proposal.

1.1 Background of the Study

The term “Banking technology” refers to the use of sophisticated information and communication technologies together with computers to enable banks to offer better services to its customers in a secure, reliable, affordable manner and sustain competitive advantage over other banks (Anitha, Saranya & Vasantha, 2013).

Advances in electronic banking technologies have created novel ways of handling daily banking affairs, especially via the online banking channel (Pikkarainen, Karjaluoto, et al, 2004). Online banking was first offered in the early 1980s as a result of banks striving to provide home banking services and this early online service required the use of the bank‘s proprietary software (AbuShanab, Pearson & Setterstrom, 2010). Banks offering electronic banking need to recognize the importance of Internet specific consumer innovation characteristics (Lassar, Manolis & Lassar, 2005).

Information technologies can help to reduce queues in banking halls if used effectively and efficiently. According to Kamel & Hassan (2003), the success in the application of different information and communication technology in retail banking delivery channels and payment systems relies to a large extent on the ability of customers to accept and adopt such systems. Also Anitha, Saranya, & Vasantha, (2013), narrated that banks are using new tools and techniques to find out their customers’ needs and acceptance and offer them tailor made products and services to make it convenient and people can take advantage in saving time and distance which was inconvenient in early days. The changes, materializing both from within and external to the financial services industry,

1 result from increasing customer demands for better service response (Ongus & Lukania 2013). According to Berger & Nakata (2013), who examined how information communications technologies (ICTs) can be implemented effectively to provide financial service innovations to the poor who live in developing countries and multiple ICT implementation projects in five sub-Saharan African countries (Ghana, Kenya, Malawi, Mozambique, and Uganda) concluded that; there are multiple factors that should be considered in the design and installation activities surrounding these technologies to ensure they provide cost-effective, quality financial services to the poor. For usage of banking technologies to be effective and efficient, it is important to understand the key factors and challenges faced by customers.

According to Guaranty Trust Bank (2015), GTBank is a banking group headquartered in Lagos, Nigeria, and listed on the London Stock Exchange. In 2013, it acquired Fina Bank Group which had been in operation in Kenya for over 25 years with subsidiaries in Rwanda and Uganda. GTBank has been in operation for over 23 years and today operates over 200 branches in Nigeria, Gambia, Ghana, Liberia, Sierra Leone, Cote d’lvoire and the United Kingdom. GTBank online banking is a service that eases and conveniently allows you to bank from the comfort of your home, at work or abroad. You can practically perform almost all the actions that would entail going to any bank branch from your comfort zone. It is important to note that the use of information technology represents a platform for business and socioeconomic development.

According to Kamel (2005), the speed, direction, and determinants of information technology infrastructure directly influence productivity, cost effectiveness, and competitiveness in industries. A range of bank and non-bank deposit-taking institutions, insurance companies and capital markets firms are providing an expanding variety of products and services, positioning the financial sector to contribute to meeting the economic cluster targets of Vision 2020, intended to transform Rwanda into a middle- income country. Relatively few of the targets are financial sector specific, but a vibrant financial sector is crucial to achieving almost all economic and social objectives (Andrews, Jefferis, & Murgatroyd, 2012).

2 According to Guaranty Trust Bank (2016), GTBank facilitates its customers with information technology tools which include GTBank Automated Payment System (GAPS); which is a secure web-based service that facilitates the processing in batches or single payments, using secured (https) connections over the Internet. GAPS features are: a) Role based system that is each user is given a role with specific functions for example Uploader, Reviewer and Approver; b) Multi-user solution that is supports multiple users for each role; c) Two-Phase Login that is every user logs in with an access code in addition to a unique username and password; d) Two factor token authentication that is approvers are issued hardware token devices which generates a dynamic password to authenticate log-in; e) Multi-level transaction authorization that is no single user can commence and conclude a transaction except otherwise stated on the account mandate; f) Comprehensive reports are ability to generate payment reports and approval reports; g) Customizable is the system that can be customized to meet specific requirements.

Benefits of GAPS are: i) Elimination of cheque-books; ii) Efficient and secure channel for making payments and collections; iii) Ability to initiate and monitor payments from any location in the world (in local and foreign currency); iv) Ease of fulfilling one’s obligations in a timely fashion; v) Online real-time access to one’s account; vi) Configuration flexibility to align with one’s payment process flow.

3 How To Login To GTBank GAPS Payment Platform in Figure 1.1

Go to GTBank Internet banking login page Click on the GAPS tab beside the "Internet Banking" tab Click on "Login" > "Continue"

Enter your access code, username and password.

Figure 1.1 Login To GTBank GAPS

Source: Guaranty Trust Bank (2016).

According to Bhulai, Sivasubramanian, Van Der Mei, & Van Steen, (2007), many Internet applications employ multi-tier software architectures. The performance of such multi-tier Internet applications is typically measured by the end-to-end response times. GAPS is based on 3-tiered model and its’ architecture is shown Figure 1.2. The 3-tiered architecture has the following major components:

1. Client: There are two clients for the application. One is a web-based user-friendly client called bank customer. The other is for administration purposes.

2. Application Server: It takes care of the server script, Driver, and checks for the connectivity for mapping to the database in order to fulfill client and administrator’s request.

4 3. Database: Database Servers stores customer’s and bank data.

A client initiates a request to the server. The server responds by executing the business logic hosted inside the program and if required, communicates with the Database Server to fulfill a client’s request. GTBank offers also mobile banking and Automated Teller Machines services.

Request Application Server

Customer

Response Request/Reply for Cold fusion server Customer/Admin / Apache server

Response Ebanking staff/Admin Business logic

Request Database

Figure 1.2 Architecture of Online Banking Application Source: Bhulai, Sivasubramanian, Van Der Mei, & Van Steen, (2007)

1.2 Problem Statement

According to Hosein (2011), since the mid-1990s, there has been a fundamental shift in delivery of banking services, toward using online banking. The trend towards the adoption of online banking has been rapid. Approximately 74% of the private banking customers in Finland are regular users of Internet banking services and in general, Europe has been, and still is, the leader in use of banking technologies.

Banks have invested and integrated banking technologies to enable their customers to use, access services and product. However, according to research done in Jordan by AbuShanab, Pearson & Setterstrom (2010), despite the benefits, only 39 percent of potential customers conducted online banking activity and evidence suggests that most

5 customers who have adopted Internet banking also continue to use traditional banking methods. Although millions of dollars have been spent on building Internet banking systems, reports have shown that potential users may not use the systems in spite of their availability (Wang, Lin, & Tang, 2003).

In Uganda, banking industry is fast growing with the use of information technology in the form of ATMs, Telephone banking, Mobile banking. Plastic card is one of the banking products that cater to the needs of retail segment (Mubaraka, Uba & Gokyalya, 2013).

In Rwanda, as stated by Ngango, Mbabazize & Shukla (2015), Electronic banking system like ATM, Pay direct, electronic check conversion, mobile telephone banking and E- transact has a great impact on bank performance because they increase profitability, reduce bank cost of operations, and increase bank asset and bank efficiency.

According to Guaranty Trust Bank (2015), GTBank offers a unique bouquet of innovative products and services that help individuals and corporate manage their finances through different technologies which are ATM, E-banking, Mobile banking and Branch banking. The arising issues of concern related to reasons why some customer accounts were inactive despite innovative products of information technologies put in place. It was also not known whether the customers really enjoyed use of information technologies to access their accounts or whether there were various challenges experienced in the process of using the services. Currently, there is a shortage of studies carried out to determine the effect of information technologies in banks, for instance; automated teller machine, Internet banking and mobile banking on customer acceptance in the banking sector in Rwanda. Hence the study was to examine how customer acceptance of information technology is influenced by its usage at GTBank, Kigali, Rwanda.

1.3 Objectives of the Study

The study was undertaken with the following objectives in mind:

6 1.3.1 General Objective

The general objective of this study was to examine how customer acceptance of information technology was influenced by its usage at GTBank, Kigali, Rwanda.

1.3.2 Specific Objectives

The study was based on the following specific objectives: (i) To assess the information technology usage by customers at GTBank, Kigali, Rwanda. (ii) To assess customer acceptance in using information technology provided by GTBank, Kigali, Rwanda. (iii) To determine the correlation between information technology usage and customer acceptance at GTBank, Kigali, Rwanda.

1.4 Research Questions

The study was guided by the following research questions: (i) How did customers use information technology at GTBank, Kigali, Rwanda? (ii) How was the customer acceptance in using information technology provided by GTBank, Kigali, Rwanda? (iii) How did information technology usage correlate with customer acceptance at GTBank, Kigali, Rwanda?

1.5 Significance of the Study

The study would be significant to various stakeholders including: scholars who would use the knowledge as reference for further study, National Bank of Rwanda would use the study recommendations and suggestions to make more improvements on information technology and design more strategies for better planning; Government of Rwanda would gain information on the level of information technology adoption by customers for national technological planning growth, GTBank Rwanda would use this information for better planning of technological implementation for the satisfaction of customers. This study would make a valuable contribution given the fact that there are

7 only a limited number of comprehensive studies dealing with the assessment of information technology and customer acceptance in Rwandan banking environment. This study would be useful for the banking sector in formulating appropriate strategies to build customer acceptance and loyalty. The study would also be helpful to customers by widening knowledge and understanding of information technology available. As far as practical implications are concerned: the findings would be important to bank managers to have a better understanding of customers’ perception on information technology.

1.6 Limitations of the Study

The sample was collected only from GTBank Kigali City. Subsequently, caution needs to be taken when generalizing these research results. The other limitation of this study concerned the measure of user acceptance because did not personalize user’s beliefs. Future studies will hopefully consider the failures of the information technology in Rwanda. The study also did not cover agency banking because Guaranty Trust Bank has not implemented that aspect. A section of the GTBank customers were not fluent communicators in English language. The challenge was overcome by translating the questionnaire into Kinyarwanda language to enable easy administration of the instrument to such customers (see Appendix C).

1.7 Scope of the Study

The scope of the study included content scope, time scope and geographical scope, explained as follows:

1.7.1 Content Scope

The study examined usage of information technology at GTBank (namely; usage of ATM, Usage of mobile banking and usage of Internet banking) while focusing on customer acceptance of the same. In particular the study endeavored to determine how the constructs of the independent variable (information technology usage) affected the construct of the dependent variable ( customer acceptance) at GTBank, as depicted in the conceptual framework in chapter two.

8 1.7.2 Geographical Scope

The study covered Guaranty Trust Bank branches located within Kigali City. The study focused on Nyarugenge, Remera, Niboye and Kimisagara sectors. This is because they provided the same services as other branches in provinces of Rwanda, easy access according to the distance and branches have many customers (see map, Appendix F).

1.7.3 Time Scope

The study considered data from 2014 to 2015. This is because Guaranty Trust Bank started operating in Rwanda in 2014 and this is when it started installing and implementing the usage of information technology within its premises.

1.8 Organization of the study

This chapter discussed introduction to the study, background of the study, statement problem, objectives and research questions of the study, it also indicated the significance of the study, scope and limitations. Chapter two covers Review of Related Literature: theoretical framework, empirical literature, critical review, research gap and conceptual framework. Chapter three describes the Research Methodology, Chapter four discusses Research Findings and Discussion and finally chapter five highlights Summary, Conclusion and Recommendations.

9 CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.0 Introduction

This chapter provides the review of the literature in three main areas: Information technology used in banking, customer acceptance, and research related to these two areas as were applied to Rwanda and other countries.

2.1 Theoretical Literature

This section includes: Information Technology in Banking and Types of Information Technology used Banking.

2.1.1 Information Technology in Banking

According to Al-Hawari, Hartley, & Ward (2005), Measuring Banks’ Automated Service Quality: A Confirmatory Factor Analysis Approach aimed to establish the critical determinants of automated service quality by including those attributes of each main information delivery technology that were assessed by existing service quality instruments and those attributes that were overlooked in the automated service quality literature. Methodology was a quantitative study. Exploratory analysis and Confirmatory Factor Analysis were used. The proposed comprehensive model was empirically validated by perceptual data collected from customers of banks of Queensland, Australia. All of the proposed five factors of customer perceptions of automated banking service quality exhibited strong unidimensionality, reliability, convergent, discriminant, and criterion related validity. Consequently, it would be accepted that the automated service quality in banks could be conceptualized as a five - factor structure consisting of: ATM service quality, telephone banking service quality, Internet banking service quality, core service quality and price quality.

According to Wang, Zhang, Sheu & Guo (2010), an Automatic Teller Machine (ATM) is a computerized telecommunication device and real-time system that provides the clients of a financial institution with access to their bank accounts. To use an automatic teller machine, clients must have a plastic ATM card with a plastic smartcard with a chip

10 or a magnetic stripe, which contains a unique card number and some security information about the client. The customer is identified by inserting plastic ATM card and entering a personal identification number (PIN) for the customer. ATM networks became more intelligent when it is providing a banking procedures. ATM uses a host processor to connect, and communicate. The host processor is analogous to an Internet service provider (ISP) in that it is the gateway through which all ATM networks become available to the cardholder (the person wanting the cash). Most ATMs are connected to interbank networks, enabling people to withdraw and deposit money from machines not belonging to the bank where they have their account or in the country where their accounts are held. See example of interbank ATM network in Figure 2.1

Figure 2.1 ATM Network Source: Wang, Y., Zhang, Sheu & Guo (2010)

According Selvapriyavadhana (2014), Mobile technology is one of the fastest growing technologies in the world and it offers mobility and anytime anywhere connection to its users. mobile banking technologies were developed based on four important technology channels that play important role in performance of the application developers and effective services to the mobile banking customers . Four important channels were given as

11 Interactive voice response (IVR technologies) :

Interactive voice response technologies developed for mobile banking services work depending on interactive voice stored by the bank on an automated system.

Standalone mobile application clients:

Mobile standalone applications are dedicated mobile banking applications that are developed to offer mobile banking services to customers of the bank. For this purpose various technologies such as Android and J2ME are used to develop mobile apps through which customer can log on to the bank application such that customer can access all services offered by the bank.

Short messaging service (SMS technology):

Short messaging service is a new kind of technology developed by mobile banking developers where customer can use banking service by the texting SMS to the bank. Customer can use various services offered by bank such as knowing bank balance, transacting amount, and alerts on term loans.

Wireless access protocol (WAP-based technology):

Wireless access protocol technology where customer log into network banking site of the bank and WAP secure protocols are used to secure the bank access to the customer and customer can enjoy various services offered by the bank. Figure 2.2 shows mobile banking network architecture.

Figure 2.2 Mobile Bank Technology Architecture Source: Selvapriyavadhana (2014)

Muhire (2015), indicated that financial services firms manage performance risk for competitive advantage, not just defense. Today, major initiatives focus on: Consolidation of Information technology like servers, storage, and data centers to raise utilization, manageability and effectiveness, Virtualization of servers, storage, and endpoints to improve quickness, flexibility, and utilization, while controlling complexity. Cost- reduction initiatives to cut operational and capital expenses and the environmental impacts associated with them and provide uninterrupted service to customers and regulators, even through panics and crises when demands are greatest.

13 2.2 Empirical Literature

Study of the past literature on information technology and customer acceptance from the perspective of India, Australia, Europe, Asia, China, Africa, East Africa and Rwanda, respectively.

Anitha, Saranya & Vasantha (2013), focused on the usage of information technology in banking sector in India. The objectives of the study were; to examine the awareness of technology in accessing banking products, to analyze the usage of technology in banking, to determine the factors that influence a customer towards information technology in banking services and suggest measures to improve effective utilization of technology in banking services. Information technology included Internet banking, Automated Teller Machines, Mobile banking and direct banking. Problem was lack of highlights on effective use of technology in banking and product awareness among people. Descriptive research design was used for the study. Sampling techniques were purposive quota sampling derived from non- probability sampling method. Selected people who had bank accounts in Chennai. Data was collected through a Structured Questionnaire. Tools and Techniques used; Percentage Analysis, Chi Square test and Factor analysis. Findings found were the mode of using direct banking depends on age of the customers, the use of banking through mobile depends on education of the customers, mode of using online banking depends on gender and mode of cash transactions through Internet depends on income. Measures to improve effective utilization of technology in banking services; People still have a grit to deposit cash through ATM’s. Banks should list the instruction procedures on all ATM outlets so that people could use it effectively. Conclusion was that emphasis should be put on the percentage of awareness on maximum utilization of information technology. Banks should take effective measures in creating awareness towards the effective usage of information technology.

2.2.1 Internet Banking and Customer Acceptance

Lichtenstein & Williamson (2006) in Australia, focused on understanding of how and why specific factors affect the consumer decision whether or not to bank on the Internet, in the Australian context. Theoretical framework is provided that conceptualizes and

14 links consumer-oriented issues influencing adoption of Internet banking. Demographics may be relevant, Convenience has been identified by a number of studies as an important adoption factor, and relevance of Internet banking as an innovation has been found significant. Adaptability, technical self-efficacy and knowledge of the Internet banking application have been found influential, suggesting that individual characteristics affect the adoption decision, Security, privacy, trust and risk concerns may impact consumer Internet banking choices. The study used a descriptive research design. Sampling technique was purposive and data was collected by means of combination of individual and focus group interviews, semi-structured interview schedule was developed by the team and piloted with four participants. Data was analyzed by qualitative content analysis. Findings indicated that time savings was the main motivator for consumer acceptance of Internet banking.

According to Lallmahamood (2007), explored the impact of perceived security and privacy on the intention to use Internet banking. An extended version of the technology acceptance model (TAM) was used to examine the above perception. A survey was distributed, the responses mainly from the urban cities in Malaysia, generally agreed that security and privacy were still the main concerns while using Internet banking. The research model explained over half of the variance of the intention to use Internet banking, the unexplained percent of variance suggested that the model may have excluded other possible factors influencing the acceptance of Internet banking. Interaction in the local language (Bahasa Malaysia) did not have an impact on the ease of use of Internet banking. Internet banking regulations and customers’ privacy would remain future challenges of Internet banking acceptance. Technology acceptance model with 4 additional variables that were theoretically justified as having influence on perceived usefulness and perceived ease of use. The findings revealed that customers were influenced by perceived usefulness and perceived ease of use.

Yüksel (2011) assessed electronic banking, in terms of a multi-channel distribution technique. The objective of the study was to examine the progression of Internet banking in an emerging market, namely Turkey. This was done through a survey among online customers of Turkish banks and the proposition of strategies to control and fight against

15 the risky issues associated with electronic banking (e-banking) activities. The usage percentage of online banking, the awareness of customers about the online services and their expectations from online banking activities in Turkey were evaluated through a survey and in depth interviews with online customers. Findings of the study revealed that Internet banking usage rates increased in the last years, depending on the increase of educated users. The usage rate of the Internet banking was significantly related with the education levels. Education and also income level made an important difference in the usage of Internet banking facilities. Most significant factors that affected the choices were the simplicity of usage of the Internet branch, and the security. By improving these points Turkish Banks could expand their customer base, and reduce the cost of giving service through classical branches. According to the survey results, Turkish Online users generally trusted in the safety of online banking transactions. The online users trusted more in Internet banking services than telephone banking facilities.

Hosein (2011) indicated that Midwest Communities of China, the Internet became more important for commerce, Internet websites played a more central role in most companies’ business plans. The success of Internet banking was determined not only by banks or government support, but also by customers' acceptance of it. Online banking acceptance gained special attention in academic studies during the past several years as banks moved toward implementing Internet banking as part of their overall strategy. The business benefit of Internet banking was to generate additional revenue, improved customer service, extended marketing, and increased cost savings. In accepting the Internet and maximizing its potential, there were several stages that firms evolved through different roles. Some key questions were identified, especially to what extent banks should modify their Internet services for customers. The aim of the study was to identify those areas in which the banks could improve or modify their services to increase the acceptance rate of Internet banking. Data was gathered from non-Internet banking users via a survey questionnaire. The responses were analyzed using Structured Equation Modeling (SEM) from which the hypotheses were tested and conclusions drawn. The results from the survey indicated that customers found it difficult to use Internet banking services, which lead to a decrease in the acceptance of Internet banking.

16 In South Korea, the study by French (2012) found that electronic banking security continued to increase in sophistication to protect against threats, the usability of the electronic banking decreased resulting in poor security behaviors by the customers. The study evaluated security risks and measures taken for electronic banking solutions. A case study was presented describing how increased complexity decreased online vulnerabilities but increased vulnerabilities from internal threats and electronic banking customers. Various threats and counter measures for protecting against those threats were evaluated. The study revealed that online banking in particular, were spending the majority of their efforts on external security without properly assessing the importance of internal security. With internal security being of a higher risk than external security, these additional security measures gave customers a false sense of security. This study addressed the need for increased awareness of internal threats through security measures such as security awareness, policies, practices, and procedures. Technology should be an added convenience to the customer and not prohibit them from accessing their information. While security is important, organizations should balance the need for increased security with the desire to make systems easy to use and useful to the customers.

Abeka, Abeka & Omondi (2012) identified the factors that influenced corporate customers’ acceptance of Internet banking services in Kenya, Uganda, Tanzania and Rwanda. Hypotheses; Perceived Usefulness positively influences use of Trade Finance Internet Services. Perceived Ease of Use positively influenced use of Trade Finance Internet Services, Bank support positively influenced use of Trade Finance Internet Services in East Africa. Research design was a survey, data was collected by means of questionnaires. Data Analysis Method; the analysis was done using the Statistical Package for Social Sciences (SPSS). Descriptive statistics and regression analysis, completed with Pearson product-moment correlation analysis. The analysis revealed that corporate users were not motivated by the same factors as private users. In order to become Internet banking customers, it was extremely important for corporate users to have a system that was easy to use and operate with full support from the bank.

17 Mukhtar (2015), conducted a study purposely to evaluate what are the perceptions of customers towards Internet banking in United Kingdom. The study postulated that information technology, in the outer world, is not static. It keeps on changing and developing. At the same time, this developing technology was impacting continuously on the ways of doing businesses and also about the perceptions of customers towards organizations and businesses. Objectives; evolution of Internet banking, examine attitudes and behaviors of people towards Internet banking in the United Kingdom, To examine challenges faced by customers to adopt Internet banking in the United Kingdom. To study challenges faced by companies in the effective development of Internet banking in the United Kingdom. The perceptions of customers towards Internet banking in the United Kingdom have been evaluated through inductive research approach. Through the questionnaire survey, data was collected and perceptions of customers regarding online banking were evaluated. This study was based on the inductive approach because it aimed to evaluate the perceptions of customers of the United Kingdom regarding online banking. Different factors affecting the perceptions of customers towards Internet banking were privacy, security, convenience and trust perceptions of customers towards Internet banking. The recommendations made included; improvement of security features and precautionary measures for providing reliable services to customers. Regarding Internet Banking, there was a need to train the incumbent Internet customers regarding safe and appropriate use of Internet banking services, banking customers disagreed regarding the certainty of the banking services. In this regard, it was recommended that the Internet bankers need to demonstrate and assure that the banking services were always available and reliable and need to elaborate the periodic maintenance of the routine faults and blockages in the banking services. The banks needed to take measures such as loyalty programs and membership programs for assuring customers that they are valuable assets from the banks.

Omotayo, & Adebayo (2015) in Nigeria, revealed that there was no significant relationship between demographic characteristics of the students and intention to adopt Internet banking, while the individual factors (attitude, trust, perceived usefulness, perceived ease of use and perceived behavioural control), and social factor (subjective norms) significantly influenced intention of the students to adoption Internet banking.

18 The study concluded that even though some students were yet to accept the use of Internet banking, their attitude towards online banking is favorable. It was therefore recommended that banks should intensify efforts to improve the security of online banking platform as well as continue to educate their customers on the perceived benefits of Internet banking in addition to making the platform more user-friendly and easy to use.

2.2.2 Mobile Banking and Customer Acceptance

According to Pousttchi & Schurig (2004), mobile banking in Saudi Arabia started to offer banking services through mobile phones. However, not many studies investigated the factors that help the bankers to design mobile services, which were suitable for and adoptable by bank customers. The study filled the gap and examined a number of factors affecting the mobile banking adoption. Using Diffusion of Innovation as a baseline theory, data was obtained from 330 actual mobile banking users. It was found that relative advantage, compatibility, and observability had positive impact on acceptance. Contrary to the findings in extant literature, trialability and complexity have no significant effect on acceptance. Perceived risk had a negative impact on acceptance. The findings of the study had practical implications for banking industry in Saudi Arabia.

In Chinese online and mobile bank users were predominantly males, not necessarily young and highly educated, in contrast with the electronic bank users in the West. The issue of security was found to be the most important factor that motivated Chinese consumer adoption of online banking. Main barriers to online banking were the perception of risks, computer and technological skills and Chinese traditional cash‐carry banking culture. The barriers to mobile banking adoption were lack of awareness and understanding of the benefits provided by mobile banking (Laforet & Li, 2005).

Laukkanen & Lauronen (2005) study proposed and validated a model for mobile banking resistance. Emulating Ram and Sheth (1989), five distinct barriers namely usage, value, risk, tradition and image were suggested as determinants of the phenomenon. A total number of 1,597 valid responses were collected. An exploratory factor analysis followed by a confirmatory factor analysis was used to test the validity of the model and measure the standardized estimates of the constructs. The results showed that the usage barrier,

19 followed by the image barrier, was the most influential barrier to overall resistance to mobile banking. Some theoretical and managerial implications were discussed. The study used a seven-point Likert scale ranging from totally disagree (1) to totally agree (7) was used. An online survey was conducted among the Internet banking customers of a large bank in Finland. The questionnaire was placed in the log-out page of the bank’s online service. The questionnaire was open for 72 hours. A total number of 1,597 valid observations were received. An exploratory factor analysis using the principal component method with 4 varimax rotation was used to determine the factors of the phenomenon. The resulting factor structure was finally verified with a confirmatory factor analysis.

In South Africa, despite the exponential growth in cell phone usage in South Africa, from 13 million subscribers in 2002 to at least 49 million subscribers, uptake of cell phone banking in the same period lags. Utilizing Rogers’ innovation adoption framework, the study examined banking consumers’ perceptions of cell phone banking attributes, and how these may affect adoption. A survey of 124 cell phone users from Gauteng, Mpumalanga, and Limpopo Provinces participated in the study. Results indicated an improvement in cell phone banking uptake compared to past years. Perceptions of risk and security concerns appeared to slow the adoption rate. While banking institutions did a lot in launching cell phone banking, focusing attention on in-house promotion and customer demonstrations of cell phone banking in order to further improve adoption rate (Shambare, 2011).

The study aimed at extending the understanding regarding the adoption of mobile banking through integrating Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB) was carried out in United Arab Emirates. Analyzing survey data from 119 respondents yielded important findings that partially support research hypotheses. The results indicated a significant positive impact of attitude toward mobile banking and subjective norm on mobile banking adoption. Surprisingly, the effects of behavioral control and usefulness on mobile banking adoption were insignificant. Furthermore, the regression results indicated a significant impact of perceived usefulness on attitude toward mobile banking while the effect of perceived ease of use on attitude toward mobile banking was not supported. Future research would most likely consider

20 the adoption of mobile banking by both governmental and private banks and draws differences in adoption rate, mode and type of services (Aboelmaged & Gebba, 2013).

Engwanda (2015) argued that mobile banking penetration was relatively low even though smartphones were the most dominant forms of mobile computing in the United States of America (U.S.A). Study was focused on how consumers ‘perceptions affect their intention to use mobile banking in the United States. Among U.S.A consumers with smartphones, Internet access, and a bank account; 68% used Internet, 33% used telephone-based banking, and only 21% engaged in some type of mobile banking activities in 2011. The results indicated that, perceived compatibility, credibility, and costs were the significant predictors of mobile banking adoption in the United States.

Rumanyika (2015), found that the adoption of mobile banking in Tanzania is negatively affected by factors such as theft of mobile handsets, poor network coverage, lack of knowledge of m-banking users, high mobile money transaction fees, irregular standards of mobile money payments, lack of enough float of mobile money agents, ATM breakdown and theft, lack of trust of mobile money agents, and poor security of mobile networks. Fourteen (14) papers (from 2010-2014) related to the study were reviewed to extract obstacles which appear most frequently. The frequencies and percentages of eight (8) studied variables were computed using MS-excel and presented in tables and pie chart. The findings revealed that poor network coverage, lack of knowledge of m-banking users, lack of enough float of mobile money agents and ATM breakdown and theft were major obstacles on the way to the adoption of m-banking in Tanzania. The study recommended that, the government and all other stakeholders should hastily focus their first priority to tackle the most critical obstacles instead of dealing with a huge number of obstacles, taking into account the limited resources the country is facing. This approach could be productive since it needs little resources, integrated efforts and strategies which must be implemented in parallel with government policies such as National Strategy for Growth and Reduction of Poverty.

21 Ngango, Mbabazize & Shukla, (2015) examined the contribution of E-banking towards banking on performance of banking Institutions in Rwanda. There was delay in payment of checks between banks; time wasted in banks as people lineup in queue waiting for service, errors as a result of manual work and fraud related cases was common. Bank clients complained of the above hence the researcher was interested to examine the contribution of this system to banking efficiency in Rwanda. The study used descriptive research design by basing on qualitative and quantitative approach in order to get better analysis of the study. Both primary and secondary data collection tools were used with their relevant tools like questionnaire and documentary analysis in order to come up with required data. In the findings it was established that electronic banking systems like ATM, Pay direct, electronic check conversion, mobile telephone banking had a great impact on bank performance because they increased profitability, reduced bank cost of operations, and increased bank asset and bank efficiency. The findings indicated that independent variable had positive high correlation to dependent variable. As conclusion E banking contributes to positive performance of banks.

Abuga & Manyange (2015) established the effectiveness of mobile banking services in selected commercial banks in Rwanda. Descriptive design involving both qualitative and quantitative approaches was employed. Sample size of 227 was computed from a total population of 524 employees from the selected banks and the selection of respondents was done through systematic random sampling. The instruments of data collection used in this study included both structured questionnaires and interview. In data analysis, quantitative data was analyzed through frequencies and percentages for respondents’ mean values were used to determine the effectiveness of mobile banking services in the selected commercial banks. Difference in effectiveness of mobile banking services was determined through One-Way-ANOVA. Research findings reveal that mobile banking services in the selected commercial banks were generally effective. The most effective item under mobile banking services was noted in security measures and privacy, followed by time management and convenience and the least effective was on the financial risk measures. The study also found out that there was significant difference in the effectiveness in mobile banking services among selected commercial banks. The bank with most effective mobile money services was Banque Populaire du Rwanda, followed

22 by the Kenya Commercial Bank, next was Bank of Kigali, Equity Bank, and finally, ECOBANK. The study concluded that the mobile banking services in the selected commercial banks are effective. It recommended that the bank management should ensure that they continue strengthening issues concerning security and privacy in mobile banking; put in place promotion and sensitization programs for mobile banking services, as well as to adopt new and modern technology that meets the demands of ever changing trends of mobile banking service.

2.2.3 Automated Teller Machine and Customer Acceptance

According to Wang, Zhang, Sheu & Guo (2010), an ATM system is a real-time front terminal of automatic teller services with the support of a central bank server and a centralized account database. An ATM provides money withdraw and account balance management services. The architecture of the ATM system, as shown in Figure2.3, encompasses an ATM processor, a system clock, a remote account database, and a set of peripheral devices such as the card reader, monitor, keypad, bills storage, and bills disburser.

Figure 2.3 How ATM works Source: Wang, Y., Zhang, Sheu & Guo (2010)

23 In USA, ATMs had provided an important expansion of banking services that benefited all consumers. Before the introduction of ATMs in the early 1970s, bank customers’ access to their cash was limited to traditional banking hours. Customers often found themselves waiting in long lines on Friday afternoons just to withdraw enough cash to carry them through the weekend. ATMs opened a whole new world of convenience by eventually allowing access to banking services 24 hours a day, 365 days a year. To pay for that service, banks typically charged a fee to help defray the cost of belonging to the network; Consumers had the ability to obtain money from their bank accounts without paying a surcharge. ATM surcharges allowed banks and other ATM operators to deploy machines in more convenient locations. Customers who were unwilling to pay a surcharge incured the cost of inconvenience, while those who valued the convenience more than the cost of the fee had the option of paying for it (Bradbury, 2014).

With the rapid development of modern information technology in China, more and more Self-service Technologies (SSTs) emerged and won more and more customers increasingly. But some types of SSTs were not accepted by the customers. The study firstly divided SSTs into financial and specialty classes based on the product function. Then, a technology acceptance model was proposed on the basis of analysis of SSTs adoption behavior. Finally, the data were collected from users of automated teller machines and automated boarding machines in china through site interview and processed by structural equation modeling analysis method. The study found that both perceived risk and perceived security have significant impact on users’ adoption of financial SSTs while perceived ease of use and perceived enjoyment positively affect specialty SSTs adoption behavior and the effects of perceived usefulness and the self- efficacy on customers were alike (Xiaoren, Xiangdong & Ling, 2013).

Adepoju (2010), analyzed cases of ATM usage and fraud occurrences within some banks in Minna Nigeria. The objectives of the study were; to identify various fraud and security threats associated with the use of ATM, evaluated the users opinion on ATM fraud and how offender robs the victim of his/her ATM card, gets the PIN and then uses the card, to know the frequency and occurrence of ATM fraud, to know the level of security put in place as regards the use of ATM. A case study of three banks in Minna to find out how

24 frauds were perpetuated with the use of ATM card. The banks were; Intercontinental Bank PLC United Bank of Africa (UBA) and Guaranty Trust Bank (GTBank). The population of the study comprised the customers of three banks in Minna, each with 50 ATM customers were sampled for the study. This gave a total of 150 ATM customers. The research instrument used was structured questionnaire. The adoption of ATM in Nigeria banks for financial transaction kept growing and people had realized the convenience in using ATM. The research showed that customers ware much comfortable with the electronic banking system, which ATM was just a segment out of various services of e-banking. Various forms of fraud were perpetuated, ranging from; ATM card theft, Skimming, Pin theft, Card reader techniques, PIN pad techniques, force withdrawal and lot more.

Asabere, Baah & Odediyah (2012), focused on measuring the ATM standards and service quality of Banks in Ghana included Intercontinental Bank Ghana (IBG) Ltd (private) and Ghana Commercial Bank (GCB) Ltd (public) as well as other Banks in Ghana. Main objectives of the study were to analyze the current standards, quality of service and trends of ATM Banking in Ghana. The methodologies used for this study involved interviews with IT officers of the case study Banks and administrations of questionnaires to a number of Bank customers in Ghana. The quick growth of ATMs in Ghana since 1995 offers opportunities to Banks to be strategic and advantageously use ATM service for customers’ Banking needs and passion. For effective customer responses, satisfaction and retention, Banks in Ghana should proactively monitor customers’ preferences with regard to use of ATMs and try to implement these preferences in the features of ATMs. Banks in Ghana should focus on important aspects of user friendliness, ATM functionality, availability of transaction receipts, security and privacy as well as frequent monitoring and maintenance of ATMs. The study recommended that the Banking Industry in Ghana should increase and diversify their services through ATMs. Banks should also improve ATM features to suit customers and use this medium to build a strong and a sustainable relationship with customers.

25 E-services were revolutionizing the way business was conducted in banking industry. Banks were trying to provide a variety of self-service channels such as Automated Teller Machines (ATM,) Internet banking and Mobile Banking (m-banking) in order to increase customer convenience, reduce costs and maintain profitability. This paper proposed a framework to explore and compare the dimensions and barriers that affected consumer's intention to use or adopt different self-service banking technologies in the Egyptian context. An empirical study on bank customers was conducted using a quantitative approach, where structured questionnaires were distributed over 1500 respondents that were divided into three groups in order to investigate the usage of ATM, Internet banking and m-banking. Data collected, was statistically analyzed using Chi square test, frequencies and cross tabulations. The results indicated that the three groups differ significantly with respect to usage, value, risk, tradition and image barriers. Moreover, significant relations between decisions of adoption with Internet banking experience, level of education, type of mobile owned and mobile Internet experience were also noted (Abd El., Rehaballah El & Hussien, 2014).

2.2.4 Customer Acceptance of Information Technology

According to Venkatesh, Morris, Davis & Davis (2003), factors determining acceptance of banking technology are:

i. Performance Expectance, driven from perceived usefulness, relative advantage, extrinsic motivates job-fit, and outcome expectations. In banking technologies the greater the perceived relative advantage, the more likely banking technology would be accepted. ii. Effort Expectance, captured the concept of perceived ease-of-use, complexity, and easy-of-use to define effort expectation as the degree of ease associated with technology use. iii. Social Influence, represent subjective norm, social factors, and image. They defined social influence as the degree to which an individual perceives the importance of using banking technology.

26 iv. Facilitating Conditions, indicated that facilitating conditions as the degree to which an individual believes that an organizational and technical infrastructure exists to support technology use. v. Perceived Self-Efficacy, the confidence an individual has in ability to use a specific type of banking Technology. Self-efficacy was an indirect determinant captured by effort expectancy and fully mediated by effort expectancy. Therefore, they dropped self-efficacy from the direct determinant of behavior. vi. Behavioral Intention, that drawing from psychological theories, which argue that individual behavior is predictable and influenced by individual intention, UTAUT contended and proved behavioral intention to have significant influence on technology usage. vii. Moderator effects Age, Adopters of technological innovations as typically younger in age, having higher incomes, better educated, and having higher social status and occupation, research findings in the context of electronic banking are not consistent.

The factors indicated significantly affect individual behavior of using Information technologies.

In Saudi Arabia, as information technology rapidly changed the fabrics of industries, the trade of online banking had became more diversified. Specialized in unlimited, speedy and convenient services, online banking transformed traditional banking in many countries. The managements’ ability to anticipate and respond to such changes in the financial marketplace, thus, had a decisive influence on the success or failure of many retail banks. The study which was exploratory in nature, was intended to develop a comprehensive conceptual framework from which researchers could empirically examine and explain the relationship between customers’ perceived usefulness of online banking and the relative advantages of online banking. Multiple regression was conducted to test the relationships. The statistical results showed that relative advantages, trust and perceived ease of use were more important and critical to customer’s intension of online banking adoption. This study further offered a marketing insight for managers to effectively deploy online system and service. In designing online banking services,

27 software developers should pay close attention to informative content that would, above all, perceived by customers as useful and relevant (Al-Somali, Gholami & Clegg, 2009).

According to study done by Oni & Ayo (2010) Nigeria was depicted to be the fastest growing telecommunications nation in Africa. Members of the Nigeria banking industry were reported to have engaged the use of Information and Communication Technology (ICT) as a platform for effective and efficient means of conducting financial transactions. This paper focuses on determining the level of users’ acceptance of the electronic banking services and investigating the factors that determine users’ behavioral intentions to use electronic banking systems in Nigeria. The survey instrument employed, involved design and administration of a total of 500 survey questionnaires within the Lagos metropolis and its environs. An extended Technology Acceptance Model (TAM) was employed as a conceptual framework to investigate the factors that influence users’ acceptance and intention to use electronic banking. To test the model, data was collected from 292 customers from various commercial banks in Nigeria. The model measured the impact of Perceived Credibility (PC), Computer Self-Efficacy (CSE), Perceived Usefulness (PU), and Perceived Ease of Use (PEOU) on customer attitude and customer attitude on customer adaptation. The result of this research shows that ATM still remains the most widely used form e-Banking service. Bank customers who were active users of e-Banking system used it because it is convenient, easy to use, time saving and appropriate for their transaction needs. Also the network security and the security of the system in terms of privacy were found to be the major concerns of the users and were hindrance to intending users.

Usefulness, ease of use of the system awareness about mobile banking and risks related to it were the main perusing factors to accept online banking system in India, (Safeena, Hema Kammani & Hundewale, 2012).

The purpose of the study by Abeka (2012), was to identify the factors that influence corporate customers adoption of Internet banking services in Kenya, Uganda, Tanzania and Rwanda. The hypotheses ware empirically evaluated by using trade finance customers of an East African bank as the target sample. Technology Acceptance Model (TAM) was the primary basis for the study. The information gathered from former

28 studies that mainly concentrated on private customer acted as a foundation for building an extension of TAM suitable for corporate customers. The study involved 137 respondents from Kenya, Uganda, Tanzania and Rwanda. Due to the quantitative nature of the study, the results were analyzed with statistical measures. This included the use of SPSS to carry out regression analysis. The analysis revealed that corporate users were not motivated by the same factors as private users. In order to become Internet banking customers, it is extremely important for corporate users to have a system that is easy to use and operate with full support from the bank.

Innovations in the telecommunication have proven to be a boon for the banking sector and its customers: one of these is Mobile Banking, where customers interact with the bank via mobile phones and banks provide them the services like short message services, fund transfers, account details, issue of cheque book etc. Presently almost all the banks in the world have started providing their customers “Mobile Banking” services. The main issue of this study was to understand the factors which contribute to user’s intention to use the mobile banking services. The purpose of this review paper was to explore the factors that influence the adoption behaviour of mobile banking services by Indian consumers. The study also discussed the various steps that mobile banking providers should take to increase their mobile banking services user’s database. (Srivastava, Singh & Srivastava, 2013).

Geetha & Malarvizhi (2014), found that automated teller machine (ATM) was perceived to be the most secure & useful electronic banking channel. Internet banking and mobile banking were perceived to be low on security dimension. Phone banking although perceived secure, scored high on complexity and low on usefulness. Further, studies presented important implications for bank to improve adoption of electronic banking services. The derived dimensions for e-banking; usefulness, complexity and security also have element of customer perception involved. So banks should attempt raising awareness of what an e-banking can do & what not, how to do it and what are the functional risks. A special task force should be trained by banks specifically to pass on the knowledge to the users to tackle technical illiteracy issue so as to reduce complexity and enhance security perception. Ultimate objective of banks and regulators should be to

29 pave the path for more cost effective, efficient, ubiquitous and convenient e-banking solutions.

In Kenya, the study by Ndumba & Muturi (2014), aimed to investigate factors affecting the adoption of mobile banking in Kenya Commercial Bank. KCB Limuru customers were used as the target population. The specific objectives were to assess the influence of users’ perceived risk on adoption of mobile banking, to evaluate the effect of trust in mobile banking by users, towards influencing their choice of adopting it, to examine how perceived convenience affects adoption of mobile banking and to explore how relative advantage influences adoption of mobile banking. Descriptive research design was used. The sample size for the research comprised 67 customers. Data was collected through use of questionnaires which were distributed to customers. Data collected was edited, coded and analyzed using Statistical Package for Social Sciences (SPSS). Data was analyzed using descriptive statistics such as frequencies and percentages. Conclusions were made using inferential statistics namely correlation analysis. Research results indicate that the adoption rate in KCB Limuru was below target. The main reasons found to be behind non-adoption of mobile banking service was risk of loss and fear of system failure. Customers’ perceived risk was found to negatively affect adoption of M-Banking service. The risks found to have the greatest influence were fear of sending money to wrong account or phone number and loss of personal or account information. On the other hand, perceived convenience was found to positively affect adoption of M-banking by being easy to use and being useful in various ways. The usefulness presented included; accessibility, saving of time and comfort. In addition, M-banking services mostly used were account balance enquiry and funds transfer. In regards to trust, the reliability of M- Banking services was found to positively affect adoption of these services. The more reliable the service was found to be, the more adopted it was. Lastly, the M-banking service was found to possess relative advantages in comparison to traditional banking services (Ndumba & Muturi, 2014).

According to Xu, Shao, Lin & Shi (2014), Internet banking allows companies to access banking services via the Internet without traditional temporal and spatial limitations. From a bank's viewpoint, Internet banking provides opportunities to expand markets,

30 increase service efficiency, lower the cost of operations, and improve customer loyalty. However, the enterprise adoption of Internet banking in China was still low, compared to the developed countries. Therefore, understanding the factors that influenced the adoption of enterprise Internet banking would help both service providers and enterprise clients develop strategies for incorporating Internet banking into their businesses for new opportunities. This paper investigated Internet banking adoption by Chinese companies. An empirical study was conducted using data from 174 Chinese companies. The results indicated that perceived benefits, perceived transactional risk, organizational readiness, and external pressure exert significant effects on enterprise adoption of Internet banking in China. Based on the research findings, suggestions were provided on how to promote the usage of Internet banking in China.

In Nigeria, Perceived Usefulness (PU) and Perceived Ease of Use (PEOU) among other factors significantly affect the acceptance of E-payment and customer. Other factors being: Perceived Risk, Trust, Security and privacy. Perceived Usefulness (PU) is defined as the degree to which a person believes that using a particular system would enhance his or her job performance. Perceived Ease Of Use (PEOU) is defined as the extent to which a person believes that using a particular system was free from effort. Perceived Risk, Trust, Security and Privacy, Perceived Risk is very much close to Perceived Security and privacy (Sanghita, & Indrajit, 2014).

Mwaikali (2014) assessed the challenges facing banks’ customers when using automated teller machines (ATMs) in the banking industry in Tanzania, a case of some selected banks in Tanzania. Specifically, the study examined the contribution of automated teller machines towards customer satisfaction, challenges facing customers when using ATM in Tanzania, and strategies which banks in Tanzania can use in improving ATM services in Tanzania. The study employed descriptive research design to explain the extent to which bank customers in Tanzania are satisfied and dissatisfied with ATMs in Tanzania. Data were sourced mainly from bank customers of Barclays bank, National Microfinance Bank (NMB), National Bank of Commerce, Tanzania Posta Bank, Exim Bank, and Diamond Trust Bank in Iringa region in Tanzania. Data were collected only to customers who had ATM cards. In all banks, 100 ATM card bearers were accessed. Structured

31 questionnaire was administered to each customer. Data analysis was done using software programs such as Statistical Package for Social Science (SPSS) and Microsoft excel. Descriptive and inferential statistics were the pivot of the analysis. Findings of the study revealed that card locking, insecurity, machine breakdown, machine out of cash, and long time in cash dispensing have a positive relationship with the challenges of that face bank customers in using ATMs in Tanzania. The study concluded that these factors (card locking, insecurity, machine breakdown, machine out of cash, and long time in cash dispensing) hinder the convenience, speed, security, reliability and cost for more customers to use ATM and get customer satisfaction in banks in Tanzania. Thus, the study recommends that those challenges attributed in the study should be given priority by banks in improving ATM services to customers.

2.3 Critical Review and Research Gap Identification

This includes summarizing and evaluating the theoretical literature and empirical literature in review to identify the research gap of the study.

2.3.1 Critical Review

Lichtenstein & Williamson (2006) focused on understanding of how and why specific factors affect the consumer decision, in the Australian context. Guided by Unified Theory of Acceptance and Use of Technology (UTAUT) model, key reasons for non-users not having accepted Internet banking were: perceptions that their current banking method was convenient; lack of awareness of the relative advantages; low levels of accessibility, lack of proficiency in the technology, habituated preference for face-to-face or telephone banking services, security and privacy issues, and distrust of the Internet banking technologies.

Adepoju, (2010) argued that ATM technology was advancing and fraudsters were on drawing board to see how they come up with different fraud skills to beat the security. Various forms of fraud were perpetuated, ranging from; ATM card theft, Skimming, Pin theft, Card reader techniques, PIN pad techniques, force withdrawal and lot more as

32 guided by Unified Theory of Acceptance and Use of Technology model and affected customer attitudes towards ATM usage negatively.

AbuShanab, Pearson & Setterstrom, (2010) and Engwanda (2015) followed Unified Theory of Acceptance and Use of Technology (UTAUT) and indicated that, perceived compatibility, credibility, and costs were the significant predictors of mobile banking acceptance by customers in the United States but other banking technologies were not considered for their acceptance.

Yüksel (2011) in limits of Unified Theory of Acceptance and Use of Technology (UTAUT) model revealed that Internet banking usage rates had increased in the last past years, depending on the increase of educated users. Education and also income level made an important difference in the usage of Internet banking facilities.

According to Aboelmaged & Gebba (2013) guided by Unified Theory of Acceptance and Use of Technology (UTAUT) indicated a significant positive impact of attitude toward mobile banking and subjective norm on mobile banking adoption. Surprisingly, the effects of behavioral control and usefulness on mobile banking adoption were insignificant. The regression results indicated a significant impact of perceived usefulness on attitude toward mobile banking while the effect of perceived ease of use on attitude toward mobile banking was not supported. Other banking technologies were not considered for their adoption.

According to Mukhtar (2015), evaluated the perceptions of customers towards Internet banking in United Kingdom. Followed Unified Theory of Acceptance and Use of Technology (UTAUT) model to examine different factors affecting the perceptions of customers towards Internet banking which were privacy, security, convenience and trust perceptions of customers towards Internet banking. Revealed that number of people doesn’t use Internet banking due to security risk.

Mwaikali, (2014), indicated that factors including card locking, insecurity, machine breakdown, machine out of cash, and long time in cash dispensing hindered the convenience, speed, security, reliability and cost for more customers to use ATM and get customer satisfaction in banks in Tanzania. Previous studies emphasized on the factors

33 that influence the acceptance of each of the three banking technologies by customers and indicating which factors affect customer perception on the usage of banking technologies.

2.3.2 Research Gap Identification

Previous studies by Mwaikali (2014) and Mukhtar (2015), covered banking technologies and influencing factors for the acceptance by customers but left out use of information technology as to impact on customer acceptance, at what level are these banking technologies accepted and which is more accepted than others and why, taking case study of Rwanda. This was the knowledge gap that the study intended to fill particularly in the case of GTBank, Kigali Rwanda, where published materials in this area of interest are few. Therefore the above mentioned gaps were the areas that were covered through this study.

2.4 Theoretical Framework

Theoretical frame work involves approach, theories and models for acceptance of banking technologies.

Generally, studies of usage of banking technologies an adoption approach were used. Adoption approach describes the acceptance decision of individual users applying different social theories of decision-making. As the adoption approach as outlined by Technology Acceptance Model (namely; Technology Acceptance Model, Technology Acceptance Model 2, Technology Acceptance Model 3 and Unified Theory of Acceptance and Use of Technology) appeared to be the most comprehensive in explaining perception and acceptance of technology. Three Models, collectively called the Technology Acceptance Model, stand out as the most widely applied explanation within the usage approach (Vijayan, 2005).

The study relied largely on the Unified Theory of Acceptance and Use of Technology that uses four determinants (performance expectancy, Effort expectancy, Social influence and facilitating conditions), intention and actual use of banking technologies. The usage of banking technologies is grounded in Unified Theory of Acceptance and Use of Technology. Unified Theory includes (Theory of Reasoned Action, Technology

34 Acceptance theories, Motivational theory, Theory of Planned Behaviour, Personal Computer Utilization theory, Innovation Diffusion Theory, and Social Cognitive Theory). Unified Theory of Acceptance and Use of Technology has emerged as the most powerful and parsimonious theory to represent the antecedents of banking technologies usage (Vijayan, 2005).

The UTAUT aims to explain user intentions to use a banking technology and subsequent usage behavior. The theory holds that four key constructs: 1) performance expectancy, 2) effort expectancy, 3) social influence, and 4) facilitating conditions; being the first three direct determinants of behavior intention and usage. Gender, age, experience, and voluntariness of use are posited to moderate the impact of the four key constructs on behavior intention and usage. The theory was developed through a review and consolidation of the constructs of eight models that earlier studies had employed to explain banking technologies usage behavior (Theory of Reasoned Action, Technology Acceptance Model, Motivational Model, Theory of Planned Behavior, a Combined Theory of Planned Behavior/Technology Acceptance Model, Model of Personal Computer Use, Diffusion of Innovations Theory, and Social Cognitive Theory), (Venkatesh, Morris, Davis & Davis, 2003).

The UTAUT model examined the determinants of user acceptance and usage behavior (performance expectancy, effort expectancy, social influence, and facilitating conditions) and found that all contribute to usage behavior either directly or through behavior intentions. These relationships were found to be moderated by gender, age, experience, and whether or not use is voluntary. In the context of this study, performance expectancy is defined as the degree to which an individual believes that using banking technologies would help him or her achieve their goals; effort expectancy is defined as the degree of ease associated with using banking technologies; social influence is defined as the degree to which an individual perceives that important, others believes should use banking technologies; and facilitating conditions is defined as the degree to which an individual believes that an organizational and technical infrastructure exists to support banking technologies as in Figure 2.4 (Venkatesh, Morris, Davis & Davis, 2003).

Figure 2.4 Unified Theory of Acceptance and Use of Technology (UTAUT)

Source: ( AbuShanab, Pearson & Setterstrom, 2010)

The Unified Theory of Acceptance and Use of Technology Model (UTAUT) was more applicable in the examining of the level at which customer accept the banking Technologies in GTBank Kigali Rwanda according to the Comparison of Models of the models.

The five factors of UTUAT model was used to study the adoption of Internet banking, Mobile banking and ATM (namely; Effort expectancy, Performance expectancy, facilitating conditions, Social Influence, and Voluntariness. Facilitating conditions is also another major factor that influences banking technologies acceptance in this study. The unified theory of acceptance and use of technology (UTAUT) is a technology acceptance model formulated by Venkatesh and others in "User

36 acceptance of information technology: toward a unified view". The UTAUT aims to explain user intentions to use an information system and subsequent usage behavior.

The study also relied on Delone and Mclean proposed updated Information System success model

The updated model consisted of six interrelated dimensions of Information technology success as shown in Figure 2. 5 DeLone &McLone Information System Success Model: information, system, service quality subsequent or intention to use, user satisfaction, and net benefits. As a result of using the information technology, certain benefits were achieved; the net benefits were to influence customer acceptance and the further use of the information technology.

Figure 2.5 Updated DeLone & McLone Information System Success Model

Source: (Delone & Mclone, 2003)

The arrows in demonstrated Figure 2.5 proposed associations between success dimensions, technology quality, measured the desired characteristics of an online system.

Customer acceptance remained an important means of measuring opinions of information technology and covered entire user experience cycle from information retrieval through usage. Net benefits were the most important success measures as they captured the balance of positive and negative impacts of the information technology on customers. Net benefits were determined by context and objectives for information technology (Delone & Mclone, 2003).

37 2.5 Conceptual Framework

The conceptual framework expresses the rationale behind the study. It reveals and tries to show the relationship between the banking technologies and customer acceptance in GTBank Kigali, Rwanda as shown in Figure 2.6

Independent Variables Dependent Variable

(Information Technology usage)

Customer acceptance (i) Use of Internet banking technology

(ii) Use of Mobile banking technology

(iii) Use of ATM technology

Intervening Variables

Education level of customers

GTBank policies Laws of Rwanda

Availability of information technology

Figure 2.6 Conceptual Framework

Source: (Preliminary interpretation)

Conceptual framework indicates the relationship between independent variable (information technology usage) and dependent variable (customer acceptance) at GTBank, Kigali, Rwanda.

2.5.1 Independent Variables

These include information technology used in the bank (use of Internet banking, use of mobile banking, use of ATM). These are technologies through which customers use to satisfy their needs on financial transactions in Guaranty Trust Bank, Kigali, Rwanda.

(i) Use of Internet banking technology

38 Technology provided by GTBank through which customers perform banking activities via Internet (online banking). This technology would offer customers every service traditionally available through local branches of GTBank, including accepting deposits, paying interest on savings and many other services. Therefore successful customer acceptance of banking technologies in GTBank Kigali Rwanda depended on Internet banking usage. Measuring the customers’ perception towards technology acceptance included ease of use and frequency of use. Data was collected using structured questionnaire and interview guide for ebanking staff and branch managers.

(ii) Use of mobile banking technology

A technology that provided by banks were customers use phones or cellular device to perform financial transactions; monitoring account balances, transferring funds between accounts, bill payments and locating ATM. Operates across all major mobile providers through one of three ways: SMS messaging; mobile web; applications developed for iPhone, android or Blackberry devices; mobile text and alert. Therefore successful customer acceptance of banking technologies in GTBank Kigali Rwanda depended on mobile banking usage. Measuring the customers perception towards technology acceptance included ease of use and frequency of use. Data was collected using structured questionnaire and interview guide for ebanking staff and branch managers.

(iii) Use of ATM technology

The ATM technology is an electronic banking outlet which allows customers to complete basic transactions without the aid of a branch representative or teller. There are two primary types of ATMs; basic units allow the customer to only withdraw cash and receive a report of the account’s balance. Complex machines accept deposits, facilitate credit card payments and report account information. Therefore successful customer acceptance of banking technologies in GTBank Kigali Rwanda depended on ATM usage. Measuring the customers’ perception towards technology acceptance included ease of use and frequency of use. Data was collected using structured questionnaire and interview guide for ebanking staff and branch managers.

39 2.5.2 Dependent Variable

Customer acceptance of banking technologies refer to the levels (high, medium and low) of acceptance in usage of banking technologies. In other words, technology acceptance is measured by the Behavioral Intention (BI) of using the technology therefore customer acceptance levels of Guaranty Trust Bank, Kigali, Rwanda depended on banking technologies usage. Measuring the customers perception towards technology acceptance included ease of use and frequency of use. Data was collected using structured questionnaire for customers and interview guide for ebanking staff and branch managers.

2.6 Summary

This chapter covered the introduction of the literature review, theoretical literature; Information Technology in Banking, determinates of most used banking technologies, theoretical framework, empirical literature review ; Internet, mobile and ATM, customer acceptance , critical review and research gap and conceptual framework. The research methodology used in this study is covered in the next chapter.

40 CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Introduction

This chapter provides details of the research methodology to be used. The research design, target population, sample size, sampling technique and data collection instruments, administration of data collection instruments was covered. Validity and reliability, data analysis procedures, ethical consideration and summary were discussed.

3.1 Research Design

This study used a case study research design. A case study enabled field research for in - depth analysis of the research problem in the chosen study location. This research design was chosen because it was perceived to be most suitable in clarifying a set of technology usage measures, why they applied, how they impact user acceptance levels and with what result, in the context of GTBank.

3.2 Target Population

The target population for this study was 20,335 customers who used either ATM, Internet banking or Mobile banking technologies, 3 e-banking staff and five branch managers of GTBank, Kigali Rwanda. This number covered all GTBank Kigali Rwanda branches since banking technologies are centralized and are not branch specific, (Jean Paul Niyomugabo , Personal communication, 14 January 2016).

3.3 Sample Design

Sample design involved sample size determination from target population, followed by the application of simple random sampling and purposive sampling techniques respectively.

3.3.1 Sample Size

For determining of the sample size of customers using GTBank technologies, Yamane’s (1967) simplified formula was used as cited by Israel (Israel, 2013) see Table 3.1.

Source: Israel (2013). Where n was the sample size, N was the population and e was the sampling error. The confidence level considered was 95%. With N=20,335 customers; e=5%; considering the confidence level of 95%; n was equal 393 customers.

Table 3.1 Sample size Determination for Customers

Sample Sample technique used Category of respondents Target population sizes

Customers who used either Automated Teller Machines Simple Random Sampling (ATM), Mobile banking or 20,335 393 Internet banking e-banking staff 3 3 Purposive Sampling

Branch managers 5 5 Purposive Sampling

TOTAL 20,343 401

Source: Preliminary Interpretation

3.3.2 Sampling Techniques

The study employed simple random and purposive sampling techniques respectively. Simple random sampling was considered whereby each individual was chosen entirely by chance and each member of the population had an equal chance of being included in the sample. Purposive sampling was considered because of the unique responsibilities of the respondents (staff from ebanking and branches).

3.4 Data Collection Methods

Data collection involved primary and secondary data. The data collection included data instruments, administration of data collection instruments, reliability and validity.

42 3.4.1 Data Collection Instruments

Primary data sources included customers of the banking technologies, staff of e-business department and branch managers were targeted by the study. Structured questionnaires were administered to customers and interview guides were used to conduct interviews with e-banking staff and branch managers. Questionnaires were considered because they were less costly, used less time, required less administration effort that was inherent in instruments like interviews and useful in obtaining objective data (Marshall & Rossman, 2006). Furthermore, questionnaires included standardized answers that made it simpler to compile data. Among the closed ended questions were the use of Likert scales. Likert scale of 5 to 1 was used. 5 = Strongly agree 4= Agree 3 = Not sure 2 = Disagree and 1= Strongly disagree. Refer to (Appendices B and C).

3.4.2 Administration of Data Collection Instruments

Structured questionnaires were distributed to the branch customers who used banking technologies and an interview guide was used to conduct interviews with the e-banking staff and branch managers of GTBank, Kigali, Rwanda. Branch managers and e-banking staff were selected because they carried out the daily operations and they were more familiar with the usage of banking technologies.

3.4.3 Pilot Study

A pilot study is a small scale preliminary study conducted in order to evaluate feasibility, time, cost, adverse events, and effect size (statistical variability) in an attempt to predict an appropriate sample size and improve upon the study design prior to performance of a full-scale research project. It was therefore advisable to conduct a pilot study prior to full scale research in order to eliminate any weaknesses that could have arisen during data gathering (Kothari, 2012).

The objective of conducting the pilot study was to check on correctness and the clearness of the questions in the instruments, the language used to construct the questions and the importance of the information which is required. The pilot test was conducted with the

43 help of 5 technology customers at I&M Bank who use the bank’s information technology. Interview guide was pretested by means of content analysis. The results of the pilot study were used to modify the data collection tool to make it more understandable and user– friendly to the respondents as well as more effective in collecting the intended data to the targeted respondents.

3.4.4 Reliability

According to Fraenkel, Wallen & Hyun (1993), reliability is the degree to which a questionnaire or any measurement method consistently produces the same results on repeated experiments in different studies. Reliability of the study ensures errors in the study are minimized. Firstly to ensure that the content of the questionnaires were valid and reliable, professionals who have knowledge in the area of study were consulted. Their evaluations were included in order to have reliable instruments.

Table 3.2 Reliability statistics for pilot study of 5 respondents

Categories Number of Items Cronbach’s Alpha value

Customer usage of information 4 0.833 technology provided by GTBank

Customer acceptance in using 12 0.856 information technology provided by GTBank

Effect of information technology 3 0.757 usage on customer acceptance at GTBank

Source: Preliminary investigation

Table 3.2 shows the value of Cronbach’s Alpha coefficients for the questionnaire. For usage of information technology it was noticed that the Cronbach’s Alpha value was equal to 0.853 for 4 items. Then for acceptance in using information technologies the Cronbach’s Alpha was equal to 0.856 for 12 items in the questionnaire. Regarding the effect of information technology usage on customer acceptance at GTBank, the Cronbach’s Alpha value was equal to 0.757. The results of Cronbach’s Alpha coefficients

44 showed that all the sections of the questionnaire were acceptable, reliable and valid because they were greater than 0.5 (Hamdan, Badrullah & Shahid, 2011).

3.4.5 Validity

It was necessary to evaluate the research instruments using content validation, in collaboration with an expert in connecting logical setting of questions. The validity of the instrument was measured by calculating the valid coefficient (CVC) that equals to total number of valid items divided by the total of items; CVC = valid Items / Total Items , CVI of customers = 11 / 12 = 0.92. Validity is the most critical condition and can be referred to as the extent or degree to which a test measures what it was intended to measure and performs as it is planned to perform. As argued by Amin (2005); the questionnaires were considered to be valid when the maximum content index was at least 0.7. 3.5 Data Analysis Procedure

This is the process of categorizing, transforming and modelling data with the purpose of making recommendations, generalizations and conclusions. The filled-in questionnaires were edited for consistency. Descriptive analysis techniques were used in consistence with the research design. Statistical Package for Social Sciences (SPSS 16.0) was the tool chosen for quantitative data analysis. Quantitative data was coded to enable the responses to be grouped into categories prior to data entry. Descriptive statistics such as frequencies, percentages, weighed mean and standard deviation were used mainly to summarize the data. Likert, scales were analysed using weighted means and standard deviation. The relationship between the independent variables and dependent variables was determined using multiple regression analysis. Tables were used in presenting the analysed data. Data was categorized relevant thematic areas and analysis, thereof, based on the prevalence of the themes and subthemes in addition to their relevance to the topic. The regression model that was used to test the relationship between the variables were based on the following stochastic equation:

Y = a0 + b1 X1 + b2 X2 + … + bn Xn+ ε

Y = a + b1 X1 + b2 X2 + b3 X3+ ε

45 Y = a + b1 (use of Internet Banking technology) + b2 (use of Mobile Banking technology)

+ b3 (use of ATM technology)+ ε

Where Xn referred to the independent variable and Y the dependent variable; a and bn were the coefficient parameters and ε is the error term. Qualitative data emanating from the interview guide was analyzed using content analysis (Kothari, 2012). Qualitative analysis included content analysis of information obtained using interview guides. The value obtained was used to generate research reports, suggestion and conclusions (Mukuru, 2015).

3.6 Ethical Considerations

The study ensured it adhered to ethical behavioral culture by ensuring the quality, privacy and integrity of information provided by the respondents. Confidentiality and anonymity of respondents was respected for all information provided. The data collected was provided on voluntary basis and the respondents were included based on their willingness to participate. Information received from respondents was treated with highest level of confidentiality and the results were used for academic purposes only.

46 CHAPTER FOUR: RESEARCH FINDINGS AND DISCUSSION

4.0 Introduction

This chapter presents the analysis and interpretation of data collected for this study. It serves as a tool to measure the objectives and the results obtained at field. The chapter was divided into four sections: demographic characteristics of sampled respondents, the usage of banking technologies, the customer acceptance in using technologies and effect of usage of information technologies on customer acceptance at Guaranty Trust Bank, Kigali, Rwanda. 4.1 Demographic Characteristics of Respondents

The general information on the respondents of the study included; age, education level, gender, language spoken and experience of technology usage by respondents. These demographic characteristics were considered to be significant because they helped to understand the characteristics of customers of GTBank. A total of 401 questionnaires were distributed to the sampled respondents, according to the proposed and approved plan. Nevertheless, 385 respondents completed and returned the questionnaires leading to a 96% rate of returns. This proportion was considered sufficient to proceed with the analysis and subsequent interpretation of data.

4.1.1 Age Distribution of Respondents Knowledge of the age of customers that who used information technology was important. Table 4.1 shows the age distribution of respondents.

47 Table 4.1 Age distribution of respondents Age (years) Frequency Percent (%)

18 - 25 65 16.88

26 – 35 186 48.31

36 - 45 94 24.42

46 and above 40 10.39

Total 385 100.00

Source: Primary data Figure 4.1 Age distribution of respondents

Respondents

450 Frequency 400 385 350 Percent (%) 300 250 200 186 150 100 94 100 50 65 48.31 24.42 40 0 16.88 10.39 18 - 25 26 – 35 36 - 45 46 and Total above

Age

From Table 4.1 also indicated in Figure 4.1, it was found that majority of the respondents who used information technology were in the age group of 26-35 (48.31 %). The study also found that the least number of respondents were in age group of 46 and above (10.39%). Furthermore, it can also be observed that majority of the respondents based on questionnaire were between 26 and 35 years (48.31%). Therefore this category of respondents was the most involved in information technology usage at GTBank.

48 4.1.2 Gender distribution Table 4.2 indicates the distribution of respondents based on their gender.

Table 4.2 Gender distribution of respondents

Gender Frequency Percent (%) Male 203 52.73 Female 182 47.27 Total 385 100.00 Source: Primary data From Table 4.2, males comprised a slightly greater proportion (52.73%) of information technology users compared to females (47.27%). These proportions were generally perceived to be roughly within the same range of similarity and comparability.

4.1.3 Education Level

Normally an effective information technology usage depends on educational level of customers. Table 4.3 shows the distribution of GTBank customers according to their educational level. Table 4.3 Highest education level of respondents Highest Educational Level Frequency Percent (%)

High School 277 71.94 Undergraduate 83 21.56 Graduate 19 4.94 Other 6 1.56 Total 385 100.00

49 Source: Primary data From Table 4.3, the highest education level of respondents indicated that 277 out of 385 respondents (71.94%) had high school level of education. University graduates were the minority (26.50%).

4.1.4 Language Proficiency Distribution of Respondents

The respondent’s proficiency in language used to interact with the information technology was essential. Table 4.4 shows the language proficiency distribution of respondents.

Table 4.4 Language proficiency of respondents

Language Frequency Percent (%) Kinyarwanda 307 79.74 French 24 6.23 English 51 13.25 Others 03 0.78 Total 385 100.00

Source: Primary data From Table 4.4, it shows that 307 (79.74 %) respondents were found to be proficient in Kinyarwanda language. This was followed by English language.

4.1.5 Experience of Information Technology Usage

Sampled Customers of GTBank were asked to indicate how long they had used information technology provided by the bank for various transactions. Table 4.5 provides a summary of information obtained:

50 Table 4.5 Experience of customer in usage of information technology

Years of experience N Observed Percentage Frequency Less than 1 385 74 (19.22%) 1-2 385 299 (77.66%) Above 2 385 12 (3.12%) Source: Primary data

From Table 4.5, findings showed that the majority 299 (77.66%) had one to two years’ experience in using information technology provided by GTBank. Information technology usage was high, thus indicating high customer acceptance.

4.2 Usage of Information Technology

Table 4.6 shows a summary of how often respondents used the information technology provided by GTBank.

Table 4.6 How often Respondents Used the Technologies at GTBank

Technologies N Very often Often Some time Rarely Never Weighted Std. Mean Dev. 5 4 3 2 1

Internet 385 0 0 270 106 09 Banking 2.68 0.516 (0%) (0%) (70.13%) (27.53%) (02.34%)

Mobile 385 367 18 0 0 0 4.95 0.211 Banking (95.32%) (4.68%) (0%) (0%) (0%)

Automated 385 155 230 0 0 0 Teller 4.40 0.491 Machine (40.26%) (59.74%) (0%) (0%) (0%)

51 (SD <0.5 or close to zero -Respondents responses were crowded around the weighted mean), (SD >0.5 or high -Respondents responses were dispersed from the weighted mean) . Source: Primary data

In Table 4.6, it was found that the weighted mean for Internet banking usage was 2.68. This meant that majority of the respondents selection fell between sometime and rarely. The standard deviation for this attribute was 0.516. This meant that there was a general consensus (i.e. unanimity) with very few divergent answers among the respondents.

It was also found that the weighted mean for Mobile banking usage was 4.95. This meant that majority of the respondents’ selection fell between very often and often. The standard deviation was 0.211, meaning that respondents were generally in agreement, without divergent views.

In addition, it was found that the weighted mean for automated teller machine usage was 4.40. This meant that majority of the respondents’ selection also fell between very often and often. The standard deviation was 0.491 and this meant that respondents were generally in agreement without divergent views.

Table 4.7 Factors that promote the usage of information technology in GTBank

Factors N Respondents Percentage (%)

Reduced Time of Transactions 385 314 81.16

Cost effectiveness 385 298 77.40

Ease of use 385 322 83.64

Technology Know - how 385 269 76.88

Source: Primary data

Table 4.7 shows that factors that promote usage of information technology in GTBank, included Reduced Time of Transactions, Cost effectiveness, Ease of use, and Technology Knowhow. Respondents confirmed this with above 76% votes across the board.

52 Table 4.8 Ranking of preference of information technology provided by GTBank

Information N Best Next Last Weighted Std. Technologies 1 2 3 mean Dev. Use ATM debit 385 321 61 3 1.17 0.400 Card service (83.38%) (15.84%) (0.78%) Use Internet 385 271 109 05 1.31 0.490 banking transfer (70.39%) (28.31%) (1.30%) & Utility services Use Mobile 385 335 43 07 1.15 0.404 transfer & utility (87.01%) (11.17%) (1.82%) services (SD <0.5 or close to zero -Respondents responses were crowded around the weighted mean), (SD >0.5 or high -Respondents responses were dispersed from the weighted mean). Source: Primary data

In Table 4.8, it was found that the weighted mean for use ATM debit card service was 1.17. This meant that majority of the respondents selection fell between best and next. The standard deviation for this attribute was 0.400. This meant that there were very few divergent answers among the respondents.

It was also found that the weighted mean for use internet banking transfer and utility was 1.31. This meant that majority of the respondents’ selection fell between best and next. The standard deviation was 0.490. This meant that there were very few divergent answers among the respondents.

In addition, it was found that the weighted mean for use mobile transfer and utility services was 1.15. This meant that majority of the respondents’ selection also fell between best and next. The standard deviation was 0.404 and this meant that there were very few divergent answers among the respondents.

53 4.3 Customer Acceptance in Using Information Technology Provided by GTBank

The Tables 4.9, 4.10 and 4.11 indicated customer acceptance of information technology provided by GTBank.

Table 4.9 Views of customers regarding ATM at GTBank

Technology N Strongly Agree Neutral Disagree Strongly Weighted Std. Acceptance Agree Disagree Dev. mean ATM 5 4 3 2 1

Accomplish 385 253 97 0 26 9 4.45 0.625 work easier (65.71%) (25.19%) (0%) (6.75%) (2.34%)

Easy to use 385 298 77 0 8 2 4.72 0.967

(77.40%) (20.00%) (0%) (2.08%) (0.52%)

Use it 385 243 142 0 0 0 4.63 0.483 without (63.12%) (36.89%) (0%) (0%) (0%) written Instruction

Recommend 385 309 61 0.639 08 03 04 4.74 0.639 it to a friend (80.26%) (15.84%) (2.08%) (0.78%) (1.04%)

(SD <0.5 or close to zero -Respondents responses were crowded around the weighted mean), (SD >0.5 or high -Respondents responses were dispersed from the weighted mean). Source: Primary data Table 4.9 indicates, weighted mean corresponding to accomplishing work easier was found to be 4.45, with standard deviation of 0.625. This meant that in line with this

54 attribute, the views of customers fell between strongly agree and agree. Evidently, there were respondents with divergent opinions on the same.

Weighted mean corresponding to easy to use was found to be 4.72 and with this attribute, the views of customers fell between strongly agree and agree. The standard deviation was 0.967, which meant that respondents were in agreement with few differing views.

Also weighted mean for login/sign off not easy was 2.03 with standard deviation 0.850. The opinions of respondents fell between Neutral and disagree with few differing views.

Weighted mean corresponding to use it without written Instruction was found to be 4.63 and with this attribute, the views of customers fell between strongly agree and agree. The standard deviation was 0.483 which meant that respondents were in agreement with few differing views.

Lastly weighted mean corresponding to recommend it to a friend was found to be 4.74 and this shows views of respondents fell between strongly agree and agree. The standard deviation was 0.639 which meant that respondents were in consensus with few differing opinions.

Table 4.10 Views of customers regarding Internet Banking at GTBank

Technology N Strongly Agree Neutral Disagree Strongly Weighted Std. Acceptance Agree Agree Dev. mean Internet 5 4 3 2 1 Banking

Accomplish 385 20 11 308 35 11 2.98 0.643 work easier (5.19%) (2.86%) (80.00%) (9.09%) (2.86%)

Lack clear 385 0 0 299 75 11 2.75 0.496 guidelines (0%) (0%) (77.67%) (19.48%) (2.86%)

55 Use it 385 0 0 207 172 06 2.52 0.530 without (0%) (0%) (53.77%) (44.68%) (1.56%) written Instruction

Recommend 385 0 0 0 358 27 1.93 0.256 it to a friend (0%) (0%) (0%) (92.99%) (7.01%)

(SD <0.5 or close to zero -Respondents responses were crowded around the weighted mean), (SD >0.5 or high -Respondents responses were dispersed from the weighted mean). Source: Primary data

Table 4.10 indicates, weighted mean corresponding to accomplishing work easier was found to be 2.92, with standard deviation of 0.643. This meant that in line with this attribute, the views of customers fell between Neutral and disagree. Obviously, there were respondents with divergent views on the same.

Weighted mean for login/sign off not easy was 3.94 with standard deviation 0.777. The opinions of respondents fell between agree and neutral with differing views.

Weighted mean corresponding to Lack clear guidelines was found to be 2.75 and the standard deviation was 0.964 with this attribute, the views of customers fell between neutral and disagree.

Weighted mean corresponding to use it without written Instruction was found to be 2.52 and with this attribute, the views of customers fell between neutral and disagree. The standard deviation was 0.530.

Lastly weighted mean corresponding to recommend it to a friend was found to be 1.93 and this shows views of respondents fell between disagree and strongly disagree. The standard deviation was 0.256. With all above attributes regarding Internet Banking, found that Internet banking was the least used information technology.

56 Table 4.11 Views of customers regarding Mobile Banking at GTBank

Technology N Strongly Agree Neutral Disagree Strongly Weighted Std. Acceptance Agree Agree Dev. mean Mobile 5 4 3 2 1 Banking

Accomplish 385 322 54 04 0 05 4.79 0.587 work easier (83.64%) (14.03%) (1.04%) (0%) (1.30%)

Absence 385 379 06 0 0 0 4.98 0.124 immediate (98.44%) (1.56%) (0%) (0%) (0%) connection to the service

Use it 385 378 07 0 0 0 4.98 0.134 without (98.18%) (1.82%) (0%) (0%) (0%) written Instruction

Recommend 385 380 05 0 0 0 4.99 0.113 it to a friend (98.70%) (1.30%) (0%) (0%) (0%)

(SD <0.5 or close to zero -Respondents responses were crowded around the weighted mean), (SD >0.5 or high -Respondents responses were dispersed from the weighted mean). Source: Primary data Table 4.11 indicates, weighted mean corresponding to accomplishing work easier was found to be 4.79, with standard deviation of 0.587. This meant that in line with this attribute, the views of customers fell between strongly agree and agree. It is true, there were respondents with a few divergent views on the same.

57 Weighted mean corresponding to absence immediate connection to the service was found to be 4.98 and with this attribute, the views of customers fell between strongly agree and agree. The standard deviation was 0.125, which meant that respondents were in agreement with few differing views.

Also weighted mean for login/sign off not easy was 1.82 with standard deviation 0.384. The opinions of respondents fell between disagree and strongly disagree without differing views.

Weighted mean corresponding to use it without written Instruction was found to be 4.98 and with this attribute, the views of customers fell between strongly agree and agree. The standard deviation was 0.134.

Last but not least, weighted mean corresponding to recommend it to a friend was found to be 4.99 and this shows views of respondents fell between strongly agree and agree. The standard deviation was 0.113 which meant that respondents were in consensus without differing opinions.

4.4 How Customer Acceptance was Affected by Information technology at GTBank

Multiple linear regression was used to model the relationship between several explanatory variables and a response variable by fitting a linear equation to observed data.

Y = b0 + b1 X1 + b2 X2 + …………………… + bk Xk+ ε

Independent variable: Xk, and Coefficient: bk, Unknown factor: ε, and Dependent variable: Y Y was: Customer acceptance

X1: Automated Teller Machine, X2: Mobile banking, X3: Internet banking.

58 Table 4.12 Multiple Regression Analysis Output

Model B Std. Error Beta T Sig.

1 (Constant) -5.320 0.643 -8.269 0.000 Automated teller 0.926 0.058 0.360 16.053 0.000 machine Mobile banking 0.144 0.133 0.024 1.080 0.281 Internet banking 1.657 .063 .678 26.453 0.000

a. Dependent variable: Customer Acceptance Source: Primary data

Y = b0 + b1 X1 + b2 X2 + b3 X3+ ε Y = -5.320 + 0.926 Automated teller machine + 0.144 Mobile banking + 1.657 Internet banking + 0.47346 Table 4.13 and also in pie chart, indicated model summary from SSPS analysis.

Table 4.13 Regression model summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 0.927a 0.860 0.859 0.47346 a. Predictors: (Constant), Internet banking, Mobile banking, automated teller machine

Source: Primary data

The correlation coefficient R measures the strength between two variables. When R is close to 1 the linear correlation is described as strong positive. When R is close -1 the linear correlation is described as strong negative. The R-squared value, denoted by R2, is the square of the correlation. It measures the proportion of variation in the dependent variable that can be attributed to the independent variable. The study found the correlation coefficient R = 0.927 and P-value = 0.001. This meant that there was a very strong, positive, multiple correlation between independent variables including: Internet banking, Mobile banking, automated teller machine and dependent variable (customer

59 acceptance). The P value<0.05 signified that the correlation was found to be significant at the 95% confidence level. It also found that the coefficient of determination R2 = 0. 859. This meant that 85.90% of total variation in Y could be explained by the stochastic model developed relating x (independent variables) to Y (dependent variable). The remaining 14.10%, of the variability in Y was due to unexplained factors that were beyond the control of the research.

4.4.1 Findings from Interview Guide

The respondents of the interview were GTBank staff in charge of e-banking and branch managers respectively. Questions asked, were answered freely and content analysis of the same was done as follows:

(a) Interview for e-banking staff

I. What are the main measures put in place to address the following problems in the using ATM machine? a) Cards get blocked often

All three staff pointed out that customers forgot their password identification number and tried many times leading to the blocking of cards. Measures put in place required customers to fill the form requesting password reset and unlocking card. All blocked ATM cards were collected from the machine and taken to the customer care officer’s desk. Thereafter, customers got back their ATM cards from the customer care officer of that branch, after appropriately identifying themselves. b) Machines running out of cash often during weekends

Two out of three staff cited that some branches did not open during weekends and this increased the number of customers who used ATM cards for withdrawals. This led the machines to run out of cash. Monitoring team was put in place. One of the three staff had no answer.

60 c) Reduction of balance without cash payment

Respondents admitted that this happened, however customers were refunded their money after confirming the claim and cross-checking it.

Table 4.14 measures put in place to address problems in the using ATM machine

ATM problems e-banking staff response a) Cards get blocked often Customers got back their ATM cards from the customer care officer of the branch, after appropriately identifying themselves. b) Machines running out Monitoring team was put in place. of cash often during weekends c) Reduction of balance Customers were refunded their money after confirming without cash payment Source: Primary data

2 Which of the following technology is most used by customers? a) ATM

ATM was the second most used technology, based on transaction volume. b) Internet Banking

Internet banking was the third most used technology based on transaction volume. c) Mobile Banking

Mobile banking was the first most used technology based on transaction volume.

3. What are the problems reported by customer in using technologies? a) ATM

Locked cards and resetting of passwords.

61 b) Internet Banking

Customers doubted security of their transactions due to prevalence of cybercrimes. c) Mobile Banking

Password reset.

4. Does the company provide regular clarifications to customers, helping them to prevent being victimized by robbery or identity theft?

If yes how?

All respondents replied in the affirmative and added that, transaction alerts are sent to customers.

(b) Interview for branch managers

(i) Do you have any information technology policy in place?

All the five branch managers replied in agreement that there was an information technology policy in their respective organizations.

(ii) How was the information technology policy used?

The policy dealt with the provision of information technology resources by GTBank and the associated responsibility of authorized users when accessing these information technology resources. These resources included, but were not limited to, the Bank network, computer systems and software, access to the Internet, electronic mail, telephony and related services. This was confirmed by four branch managers and one branch manager had no comment.

(iii) How often do you update information technology policy?

All respondents admitted that information technology at GTBank was updated on quarterly basis.

62 (iv) How is customer training conducted on Information technology usage?

All respondents said that training was provided orally whenever customers visited branches of GTBank.

(v)What are your suggestions and recommendations for improving information technology usage?

The respondents suggested that network downtime incidences should be resolved; Information technology used by GTBank was based on a fully functional network and when connectivity was broken, it inconvenienced both staff as well as customers. Another suggestion was customer training on information technology usage guidelines and security.

In summation, the implication was that the rationale was sufficient as the interview stands. It had enough value to be included in a collection of study and influence of the different practices in GTBank.

63 CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction

This chapter provides a summary of key findings on the study of information technology used at GTBank and how it influences customer. Finding on each objective were arrived at and a conclusion made. Recommendations and suggestions for further studies were derived from the findings study.

5.1 Summary of Findings

The study was conducted at GTBank and the following were the key findings obtained.

5.1.1 Usage of Information Technology

Objective one was to assess the usage of Information technology by customers at GTBank Kigali, Rwanda. Findings in Table 4.6 showed that Mobile banking and ATM with 4.95 and 4.40 weighted mean respectively. This indicated that were more used than internet banking. Table 4.7 Mobile banking and internet banking were secured than ATM, Table 4.8 revealed the factors that promotes usage of information banking technologies; reduced time of transactions, cost effectiveness, ease of use, technology Knowhow, 100% confirmed by GTBank customers. Tables 4.9, 4.10 and 4.11 indicated that ATM and Mobile banking were more used than internet banking due to their features.

5.1.2 Customer Acceptance in Using Information Technology Provided by GTBank The second objective was to assess Customer Acceptance in using the information technology. Tables 4.9 revealed that ATM features were more accepted compared to Internet banking and Mobile banking features. Table 410 showed that Internet banking due to its difficult technological knowhow requirement, customer can not recommend it to friends. Table 4.11 showed that Mobile banking was the most used information

64 technology, as indicate by weighted mean and customer confirmed that it had convenient features for use.

5.1.3 How Customer Acceptance was Affected by Information technology at GTBank

The last objective was concerned with determination of the effect of Information technology on Customer Acceptance at GTBank Kigali, Rwanda. Multiple regression analysis was carried out to determine the relationship between the Information technology usage (independent variable) and Customer acceptance (dependent variable) at GTBank Kigali, Rwanda.

Table 4.13 showed that multiple correlation coefficient R = 0.927 for Information banking technologies used by customers in GTBank Kigali, Rwanda indicates a good level of prediction.

Furthermore, it was found that coefficient of determination R 2= 0.859, meaning that 85.90% of total variation in customer acceptance could be explained by the relationship between information banking technologies and customer acceptance at in GTBank Kigali Rwanda and the remaining total variation of 14.10% are unpredictable due to factors beyond the research control.

5.2 Conclusion

The study concluded that Mobile banking and ATM were the most used than Internet banking due to its inconvenient features to customers. Internet banking and Mobile banking, however were found to have been secure than ATM. Mobile banking was more preferable than internet banking and ATM.

The study confirmed that Mobile banking, ATM was more accepted compared to internet banking. Internet banking required technological Know-how. Inconvenient features which required a certain level of education hence for layman was not easy.

From R = 0.927 and R2 = 0.859, there was a very strong, positive, correlation between information technology usage and customer acceptance as was carried out in GTBank

65 Kigali, Rwanda. The P-value was found to be 0.001 signifying that the correlation was a statistically significant one.

5.3 Recommendations

Subsequently, these were the recommendations to GTBank Kigali, Rwanda:

In the short term, it is recommended to GTBank Kigali, Rwanda that: more training of customers and awareness skills about internet banking technology should be provided to customers. Consistent maintenance of ATM machines, due to persistent break down and lack of cash on query.

In the medium term, The management of GTBank should plan upgrading existing information technology to fit to new requirements like agency banking features.

In the long term, the management should formulate a better information technology policy and laws regulating the usage of information technology. Provision of information technology security awareness, to increase trust of customer to use information technology.

5.4 Suggestions for Further Study

Further studies should be carried out in line with the following aspects: the area of information technology usage: 1. This having been a case study, a more general study should be carried out in other Banks in Rwanda, to give a holistic picture of information technology usage and customer acceptance in the banking sector in Rwanda. 2. A study should be carried out on influence of technological know-how of customers in Internet banking usage. 3. A long term study should be carried out on the parameters of interest in this study but taking into account the changing technology over a long period of time(namely a longitudinal study). 4. Future studies should consider demographic factors for example age, population density and average per capita income in order to provide a better idea of what kind of technology based services to be offered in which locality.

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76 APPENDIX A: INTRODUCTION LETTER SHOWING RESEARCH AUTHORIZATION

77 APPENDIX B: QUESTIONNAIRE FOR CUSTOMERS OF GTBANK

Dear respondent,

My name is John KWIZERA; I am a postgraduate student pursuing a Master’s Degree in Information Sciences at Mount Kenya University, Kigali campus. The title of my study is Information Technology usage and customer acceptance in the banking sector: a case study of Guaranty Trust Bank, Kigali, Rwanda. Responses you will give remain strictly confidential and findings shall be used only for academic purposes. I sincerely thank you for taking time to fill in this questionnaire.

Demographic data (Please tick for answering)

Age (tick one option only) Highest education level (Tick one a) 18 – 25 option only) b) 26 – 35 a) High School c) 36 – 45 b) Undergraduate d) 46 and above c) Graduate d) Other Gender (Tick one option only) Language spoken (You may tick more a) Male than one option) b) Female a) Kinyarwanda b) French c) English d) Others Experience of technology usage (tick one option only) a) Less than 1 year b) 1-2 years c) Above 2 years

78 [A] Customer usage of information technology provided by GTBank i. How often do you use the following technologies in GTBank? (Tick (√) one option only in each row)

Information technologies 5=Very 4= 3= 2= 1= often Often Sometimes Rarely Never Internet Banking technology

Mobile Banking technology Automated Teller Machine(ATM) technology

ii. Which factor promotes you to use the technology in GTBank? (You may tick (√) more than one option)

(a) Reduce Time of Transactions

(b) Cost effectiveness (c) Ease of use

(d) Technology Know - how

iii. Rank the technology that serves you better than others as you use it (Tick (√) one option only in each row)

Information technologies Best Next Last No. 1 No. 2 No. 3 (a) Use ATM debit card service (b) Use Internet banking transfer & Utility services (c) Use mobile transfer & Utility services iv. How frequently do you use the following information technologies per month? (Tick (√) one option only in each row)

Information technologies Nil 1 to 3 3 to 10 Over 10 times

(a) ATM (b) Internet banking transfer (c) mobile transfer

[B] Customer acceptance in using information technology provided by GTBank v. This section deals with customer acceptance by using technologies. (Please answer the following questions by marking only one tick (√) in each row)

5= 4= 3= 2= 1= Technology acceptance Strongly Agree Neutral Disagree Strongly agree Disagree ATM It makes the things I want to accomplish easier to get done. Easy to use Login/Sign off are not easy I can use it without written instructions. I would recommend it to a friend. Internet Banking Login/Sign off are not easy Lack of clear guidelines

It makes the things I want to accomplish easier to

80 get done. I can use it without written instructions. I would recommend it to a friend. Mobile Banking Login/Sign off are not easy Absence immediate connection to the service It makes the things I want to accomplish easier to get done. I can use it without written instructions. I would recommend it to a friend.

[C] Effect of information technology usage on customer acceptance at GTBank vi. In your own opinion does the use of the following technologies affect customer acceptance? (Tick one option only in each row)

Technologies 5= 4= 3= 2= 1=

Strongly Agree Neutral Disagree Strongly agree Disagree

ATM

Internet banking

Mobile banking

Thank you for taking your time to respond the questions.

81 APPENDIX C: QUESTIONNAIRE FOR GTBANK CUSTOMERS TRANSLATED INTO KINYARAWANDA

Mbanje Kugusuhuza,

Amazina yanjye ni John KWIZERA; Umunyeshuri mu cyiciro cya gatatu muri kaminuza ya Mount Kenya University, Ishami rya Kigali. Umutwe w’ubushakashatsi ugira uti “Information Technology usage and customer acceptance in the banking sector: a case study of Guaranty Trust Bank, Kigali, Rwanda”. Ibisubizo muri butange biraguma ari ibanga kandi bikoreshwe gusa ku mpavu zo kwiga. Mbaye mbashimiye kubwo umwanya wanyu mufashe musubiza ibibazo.

Umwirondoro wawe (Shyira akamenyetso mudukubo (√) ku gisubizo wifuza)

Imyaka ufite(Shyira (√) ku gisubizo Amashuri wize yose (Shyira (√) ku kimwe) gisubizo kimwe) e) 18 – e) Amashuri yisumbuye f) 26 – f) Impamyabushobozi Kaminuza g) 36 – g) Impamyabushobozi ihanitse h) 46 no hejuru h) Andi mashuri Igitsina (Shyira (√) ku gisubizo kimwe) Indimi uvuga (Shyira (√) ku gisubizo a) Gabo wifuza) b) Gore a) Ki b) French c) English d) Izindi Uburambe mu ikoreshwa ry’ikorana buhanga (Shyira (√) ku gisubizo kimwe) a) Munsi y’ umwaka 1 b) Hagati y’ imyaka 1-2 c) Hejuru y’ imyaka 2

82 [A] Ikoreshwa ry’ ikoranabuhanga ritangwa na GTBank i. Ni kangahe ukoresha ikoranabuhanga rikurikira muri GTBank? (Shyira akamenyetso (√) ku gisubizo wifuza kuri buri morongo utambitse) 5=IkoranabuhangaKenshi 4= 3= 2= 1= cyane Kenshi Rimwe na Gake Ntanari rimwe ya mwe Internet Banking technology

Mobile Banking technology Automated Teller Machine(ATM) technology

ii. Ni irihe koranabuhanga wizeye umutekano kurusha muri GTBank? (Shyira akamenyetso (√) ku gisubizo wifuza kuri buri morongo utambitse)

Ikoranabuhanga 3=umutekano 2= 1= uhagije umutekano umutekano uringaniye udahagije Internet Banking technology

Mobile Banking technology Automated Teller Machine(ATM) technology

iii. Ni iyihe mpamvu igushishikaza gukoresha ikoranabuhanga rya GTBank? (Shyira akamenyetso (√) ku gisubizo wifuza )

a) Igihe gito cyo kurikoresha

b) Ikiguzi gihendutse c) Ikoreshwa ryoroshye

d) Ubumenyi buhambaye

83 iv. Tondeka iri koranabuhanga ukurikije iri kora neza kurusha (Shyira akamenyetso (√) ku gisubizo wifuza kuri buri morongo utambitse)

Ikoranabuhanga iryambere irikurikiraho Irya nyuma No. 1 No. 2 No. 3 (a) Gukoresha ATM (b) Gukoresha Internet banking transfer & Utility services (c) Gukoresha mobile transfer & Utility services

v. Ni kangahe ukoresha iri koranabuhanga mu kwezi? (Shyira akamenyetso (√) ku gisubizo wifuza kuri buri morongo utambitse)

Ikoranabuhanga Zero 1 - 3 3 - 10 Inshuro 10 zirenga (a) ATM (b) Internet banking transfer (c) mobile transfer

84 [B] Kwemera gukoresha ikoranabuhaga ritangwa na GTBank

vi. Aha ni ibijyanye no kwemeza ikoreshwa ry’ikoranabuhanga. (Shyira akamenyetso (√) ku gisubizo wifuza kuri buri morongo utambitse)

5= 4= 3= 2= 1= Kwemera Ndabyemera Ndabyemera Simbizi Simbyemera Simbyemera ikoranabuhaga cyane na gato ATM Rinyorohereza ibyo nshaka gukora Riroroshye gukoresha Gufungura no gufunga ntabwo byoroshye Narikoresha nta mabwiriza yanditse. Narirangira ishuti. Internet Banking Rinyorohereza ibyo nshaka gukora Riroroshye gukoresha Gufungura no gufunga ntabwo byoroshye Narikoresha nta mabwiriza yanditse.

Narirangira

85 ishuti. Mobile Banking Rinyorohereza ibyo nshaka gukora Riroroshye gukoresha Gufungura no gufunga ntabwo byoroshye Narikoresha nta mabwiriza yanditse. Narirangira ishuti.

[C] Igaruka ku ikoreshwa ry’ ikoranabuhanga no kuryemera muri GTBank vii. Uko ubitekereza ikoreshwa ry’ ikoranabuhaga rigira ingaruka ku kwemerwa kwaryo? (Shyira akamenyetso (√) ku gisubizo wifuza kuri buri morongo utambitse)

5= 4= 3= 2= 1= Ikoranabuhaga Ndabyemera Ndabyemera Simbizi Simbyemera Simbyemera cyane na gato ATM

Internet banking

Mobile banking

Murakoze gusubiza ibibazo.

86 APPENDIX D: INTERVIEW GUIDE FOR GTBANK E-BANKING STAFF

Questions about current information on technology usage

I. What are the main measures put in place to address the following problems in the using ATM machine? a) Cards get blocked often b) Machines get out of cash often in weekends c) Reduction of balance without cash payment

2 Which of the following technology is most used by customers? a) ATM b) Internet Banking c) Mobile Banking

3. What are the problems reported by customer in using technologies? a) ATM b) Internet Banking c) Mobile Banking

4. Does the company provide regular clarifications to customers, helping them to prevent being victimized by robbery or identity theft?

If yes how?

If no, why?

Thank you for taking time to answer the questions in this interview.

87 APPENDIX E: INTERVIEW GUIDE FOR GTBANK BRANCH MANAGERS

(i) Do you have any information technology policy in place?

(ii) How was the information technology policy used?

(iii) How often do you update information technology policy?

(iv) How is customer training conducted on Information technology usage?

(v) What are your suggestions and recommendations for improving information technology usage?

Thank you for taking time to answer the questions in this interview.

88 APPENDIX F: CITY OF KIGALI SECTOR MAP

Source: (Kigali City, 2013)