TABLE OF CONTENTS

DECLARATION ......................................................................................................................... i

APPROVAL ............................................................................................................................... ii

DEDICATION ........................................................................................................................... iii

ACKNOWLEDGMENT ........................................................................................................... iv

LIST OF TABLES ....................................................................................................................... v

CHAPTER 0 NE ........................................................................................................................ I

INTRODUCTION ........................................................ : .............................................................. !

1.0 Introduction ............................................................................................................................ !

1.1 Background of the Study ....................................................................................................... !

1.2 Statement of the Problem ...................................................................................................... .4

1.3 Purpose of the Study ............................................................................................................. .4

1.4 Objective of the study ........................................................................................................... .4

1.5 Research Questions ............................................................................................................... .4

1.6.0 Scope of the study ............................................................................................................... 5

1.6.1 Content scope ...................................................................................................................... 5

1.6.2 Geographical Scope ............................................................................................................ 5

1.6.3 Time Scope ......................................................................................................................... 5

1.7 Significance of the study ....................................................................................................... 5

1.8 Definition oftem1s Used ....................................................................................................... 6

CHAPTER TW 0 ....................................................................................................................... 7

REVIEW OF RELATED LITERATURE ................................................................................... 7

2.1 Introduction ............................................................................................................................ 7

2.2 Theoretical literature Review ................................................................................................. 7

2.3 Conceptual framework ........................................................................................................... 8

2.4 Literature review on ICT innovation ..................................................................................... 9

2.4.1 E-fund transfer .................................................................................................................. ! 0

2.4.2 Telephone Banking ........................................................................................................... 11

2.4.3 Intemet Banking ............................................................................................................... 12

2.5 ICT innovation & Customer retention .................... .' ............................................................ 15

2.5.1 Job Satisfaction ................................................................................................................. IS

2.5.2 Commitment ..................................................................................................................... 20

vi

2.5.3 Personal agency ................................................................................................................ 21

2.6 Relationship between ICT innovation & customer Retention ............................................. 22

2. 7 Conclusion ........................................................................................................................... 24

CHAPTER THREE ................................................................................................................. 25

RESEARCH METHODOLOGY .............................................................................................. 25

3.0 Introduction ......................................................................................................................... .25

3.1 Research Design .................................................................................................................. 25

3.2 Target Population ................................................................................................................. 25

3.3 Sample size .......................................................................................................................... 25

3.5 Sources ofData .................................................................................................................... 26

3.6 Procedure of Data Collection ............................................................................................... 27

3.7 Data Collection instruments ................................................................................................ 27

3.8 Validity and Reliability of the Instruments ......................................................................... 28

3.9. Data Analysis Techniques .................................................................................................. 28

3.9.1 Limitation of the study ...................................................................................................... 29

3.9.2 Ethical Considerations ...................................................................................................... 29

CHAPTER FOUR ................................................................................................................... 30

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA. ............................... JO

4.0 Introlluction .......................................................................................................................... 30

4.1 Response Rate ........................................ , ............................................................................. 30

4.2 Background of the Respondents .......................................................................................... 30

4.2.1 Sex of Rcspondents ........................................................................................................... 30

4.2.2 Age of the Respondents .................................................................................................... 31

4.2.3 Marital status respondents ................................................................................................ 32

4.2.4 Educational level of respondents ..................................................................................... .32

4.2.5 Response according to department ofwork ...................................................................... 33

4.2.6 Response o1ccording to the level of work (position held) ................................................. 33

4.2. 7 Response according to Tenure with the Bank ................................................................. .34

4.3 Objective one. Effects ofE-fund transfer technology on customer retention ..................... 35

4.3.1 Banking services mostly use ............................................................................................. 35

4.3.2 Electronic Fund transfer saves time, secure, simple and safe ........................................... 36

4.3.3 Electronic i'und transfer has positively affected customer retention in banking industry.36

Vll

4.3.4. E-fund transfer in banking useful ..................................................................................... 37

4.3.5. HowE-fund transfer banking has improved on the retention of customers .................... 37

4.3.6 Response on whether E-fund is to be promoted in Banks ............................................... .38

4.4 Objective Two: Effects of telephone banking satisfaction with the security system and

customer retention in banking industry ..................................................................................... 39

4.4.1 Telephone banking satisfaction with security system ...................................................... 39

4.4.2 Seeks to find whether the Response on the quality of telephone Banking is bad ........... .40

4.4.3 Response on whether Telephone banking has improved the retention of customers in the

banking sector in Kotido .......................................................................................... : ................ .41

4.4.4 Response on satisfaction with telephone banking services delivered by my Bank in

banking industry ....................................................................................................................... .4 2

4.4.5 Seek to find Response on whether Telephone banking is to be promoted in Banking .... .43

4.5 Objective Three. Effects ofiCT innovation on internet banking whether Internet banking

saves my time, secure, simple and safe ........................ : ........................................................... .43

4.5.1 Internet banking saves my time, secure, simple and safe ................................................ .43

4.5 .2 Response on whether Internet banking improves my communication with the bank ..... .44

4.5.3 Seek to find on Response on whether using internet banking is complex and expensive .

................................................................................................................................................... 45

4.5.4 Seek to find the Response on whether Internet banking as led to customer retention in the

banking industry in Kotido ....................................................................................................... .46

4.6 Regression Model ................................................................................................................ 48

4. 7 Relationship between ICT innovation and customer retention ........................................... .49

CHAPTER FIVE .................................................................................................................... ,50

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ............................................. 50

5.1 Summmy of the Study ......................................................................................................... 50

5.2 Conclusions ......................................................................................................................... .51

5.3 Recommendations ................................................................................................................ 52

5.4 Area for further research ...................................................................................................... 53

APPENDIX 1: ...................................................................................................................... , .... 56

QUESTIONAIRE ...................................................................................................... , ............... 56

APPENDIX II ............................................................................................................................ 60

SAMPLING TABLE BY KRAJCIE and MORGAN (1970) .................................................... 60