Muinde, Philip James(Daystar University, School of Business and Economics., May 1, 2014)
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Abstract:
The purpose of this study was to assess the impact of technological innovation on service quality in the retail banking industry. The research mainly focused on a case of one retail bank that has been at the forefront of investments in information technology (IT) so as to offer enhanced e-services to its customers, namely Family Bank. The research had four main objectives; to identify technological innovations adopted by Family Bank for e-based service delivery; to identify the e-based service delivery channels preferred by Family Bank customers; to examine customer expectations and perceptions of service quality for e-based services offered by the bank; and lastly, to evaluate the relationship between technological innovation and service quality in Family Bank. The findings of the study revealed that there were three main technological innovations for e-services in Family Bank; ATM, Mobile, and Internet banking. The key findings for the study revealed that most customers preferred ATM services and mobile banking services as compared to internet banking. Generally there was positive correlation along certain service quality dimensions in assessing the degree of relationship between expectations and perceptions. However, through gap score analysis, it was clear that several gaps still existed in service quality for aspects such as ease of use, reliability, security, and system availability. The study recommended that the bank focus on improving service quality by addressing these gaps through strategic intervention.
