The use of mobile banking by bank customers in Kenya rose to 57 percent in 2019 from 49 percent recorded in 2018, according to this year’s edition of the Kenya Bankers Association (KBA) Survey released on Thursday.
According to the survey, the spike was also experienced in the utilization of Internet banking channels, whose preference doubled from 16 percent in 2018 to 34 percent the following year.
Despite the growing overall preference for digital channels as transaction platforms, more than half of bank customers would rather call a customer service agent while filing complaints or making enquiries.
“The high preference of mobile banking in part could be due to the high mobile phone penetration which has reached almost near-saturation levels compared to Internet adoption,” noted the findings.
“Overall, this shows that customers are warming up to digital channels. These transformations have been enabled by banks’ continued investment in lower-cost digital capabilities which have consequently boosted customers’ adoption given their simplicity and convenience,”.
The survey pointed out that fully-automated banking services were preferred more in 2019 (24 percent) compared to 2018(5 percent).
The findings come at a time when banks are rolling out innovations such as Chatbots based on Artificial Intelligence in keeping with the needs and expectations of customers.
The innovations have also been motivated by the desire to bolster operational efficiency through automation.
“From the survey’s findings, there is a clear indication that technology remains an important driver of customer satisfaction and promoting customers’ seamless interaction with banks’ transaction channels,” KBA Chief Executive Officer Dr. Habil Olaka told reporters in Nairobi.
While customers’ preference for digital channels is on the rise, the survey indicates that branches are still an important channel for customer engagement as 22 percent still prefer to visit the branch, highlighting the need for banks to consider branch networks not only as a footprint for transactional purposes but to also as interaction hubs.
JK/as/APA