CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Research Design
A Case study research design was adopted for this study as it gives intensive and detailed
description of existing phenomenon among the Online banking strategies with intent of
employing data to justify and make more intelligent plans. This design is suitable as it describes
rather than predict and it is effective in studying a single entity in depth in order to gain an
insight into the larger case of the Online banking strategies that are coming up.
3.2 Area of the study
The study took place at in Commercial banks in Eldoret
3.3 Target Population
The study targeted a population of 88 respondents who constitute 4 top managers, 6 credit
officers, and 20 customers who work in Commercial banks in Eldoret. The following table shows
how the target population was drawn.
Table 3.1 Target population
Stratum Target population
Top managers 4
Credit officers 6
Teller 20
Marketing 58
Totals 88

Source (Commercial banks in Eldoret, 2021)

3.4 Sampling design and Sample size
The study employed stratified sampling technique in selecting the respondents. Cochran (1977)
stated that stratified sampling involves the division of a population into smaller groups known as
strata. In stratified random sampling, the strata are formed based on members' shared attributes
or characteristics. A random sample from each stratum is taken in a number proportional to the
stratum's size when compared to the population. These subsets of the strata are then pooled to
form a random sample.
The sample size represent 50% of the target population where (Patton, 2002) recognizes 10% to
30% in a case study research design This ensured that each member of the target population had
an equal and independent chance of being included in the sample. The table below shows how
the sample was considered from two categories
Table 3.2 Sample Size
Stratum Target population Procedure Sample Size
Top managers 4 4×0.5 2
Credit officers 6 6×0.5 3
Customers 20 20×0.5 10
Owners of retails 58 58×0.5 29
Totals 88 88 44

Source (Commercial banks in Eldoret, 2021)

3.5Data collection Instruments
The main tool of data collection instrument used was questionnaires. The questionnaires consist
of both closed ended questions. The questionnaires were sub-divided into sections so as to
capture the response and details required. The purpose for using questionnaires is because they
are easier to administer and easy to analyze, since each item is followed by an alternative answer.
Questionnaires were not to pressure the respondents. The researcher used random sampling to
administer the questionnaire to the respondents. Questionnaires were taken by the researcher to
the respondents, whom after answering the questions collected by the researcher herself. This
type of administration was the best because the researcher was be able to identify where the
respondents had difficulties.
3.6 Description of Data Collection Procedures
The researcher personally administered the questionnaire which helped to clarify difficult
questions thus save time and ensure quick response. The researcher later picked the completed
questions from the respondents.
3.7 Validity and Reliability of Research Instruments
Validity is defined as the accuracy and meaningfulness of inferences according to Mugenda
(1999) which are based on research results. The study applied construct validity as a measure of
the degree, to which the data obtained from the research instrument meaningfully and accurately
reflects a theoretical concept. Mugenda (1999) suggest the reliability is the degree to which
research instruments yield consistently result of data after research trials in testing reliability
errors are the deviation from true measures are to the facts that have not been effectively
addressed by the research. To ascertain the reliability of questionnaire, pretested method was
subject to the respondent that formed the part of the study to determine constancy of results. The
data collected was reliable since the questionnaire method used can be applied elsewhere and
similar result found.
3.8 Data Analysis and Presentation
Data was edited, coded and analyzed using qualitative analysis method where descriptive
analysis was employed to analyze data. Descriptive analysis was used because it is describes the
basic feature of data in the study. The data that was obtained from the questionnaire was coded,
organized and presented using descriptive including frequency distribution and percentage tables
in chapter four and to made and then a summary to be done.
 CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Demographic data
The study was carried out among the staff and Commercial banks in Eldoret. The respondents in
this study were 44 and their demographic data was as follows, 58.0% of the respondents were
male while 48.0% of the respondents were female. In relation to age bracket of the respondent
20.0% of the respondents were between 21-30 years 48.0% of the respondents were between 31-
40 years while 32.0% of the respondents were between 41-50 years. In relation to the level of
education 28.0% of the respondents had university certificate 54.0% of the respondents had
college certificate while 18.0% had secondary certificate. The findings in relation to the above
information have been illustrated in the table 4.1 below.
Table 4.1 Background Information
Background Information Personal data Frequency Percent
Gender Male 30 58,0
Female 14 42.0
Total 44 100.0
Age bracket 21 - 30 9 20.0
31 - 40 22 48.0
41 - 50 13 32.0
Total 44 100.0
Level of education University 14 28.0
College 21 54.0
Secondary 9 18.0
Primary
Total 44 100.0
4.2 Effect of Mobile banking on competitive advantage of commercial banks in Eldoret
Effect of Mobile banking on competitive advantage of commercial banks in Eldoret, it was
established that Facilitates efficiency in delivery of cash to the customers was one of the effects
used by Commercial banks in Eldoret and in relation to this 48.0% greed while 52% of the
respondents strongly agreed on the same. It reduces chances of financial fraud was also one of
was one of the effects used by Commercial banks in Eldoret and in relation to this 80.0% of the
respondents agreed while 20.0% of the respondents strongly agreed on the same. It was also
established that contributes to effective accountability of financial management to an
organization was also one of the strategies adopted by Commercial banks in Eldoret and in
relation to this 68.0% of the respondents agreed while 32.0% of the respondents strongly agreed
on the same. Improves financial access to customers in areas where banks are inaccessible was
adopted by Commercial banks in Eldoret where 82.0% of the respondents agreed while 18.0% of
the respondents strongly agreed on the same. The information has been illustrated on the table
below 4.2 below.
Table 4.2 Effect of Mobile banking on competitive advantage of commercial banks in
Eldoret
Statement SD D N A SA ∑fx ∑fx/
n
f % f % f % f % f %
Facilitates efficiency in delivery 18 48.0 26 52.0 202 4.6
of cash to the customers
It reduces chances of financial 34 80.0 10 20.0 182 4.1
fraud
Contributes to effective 31 68.0 13 32.0 189 4.3
accountability of financial
management to an organization
Improves financial access to 35 82.0 9 18.0 220 5.0
customers in areas where banks
are inaccessible
4.2.1 Effect of Electronic Payments Services on competitive advantage of commercial banks
in Eldoret
On the second objective which was meant found the effect of Electronic Payments Services on
competitive advantage of commercial banks in Eldoret by Commercial banks in Eldoret it was
established that electronic banking Contributes to increase in customer deposits to the
organization the findings were as follows, 24.0% of the respondents disagrees 6.0% were neutral
50.0% of the respondents agreed while 20.0% of the respondents strongly agreed on the same. It
was also established that electronic banking Its use contributes to reduction in duplication of
accounting entries, 48.0% of the respondents disagreed in their views 15.0% were neutral while
58.8% of the respondents agreed on the same. It was also established that electronic banking
enhances togetherness improves time management in customer service delivery in relation to
this response was follows, 8.0% of the respondents were neutral 58.0% of the respondents
strongly agreed while 34% of the respondents strongly agreed on the same. It was also
established that electronic banking improves operational financial operations in the banks and in
relation to this, 18.0% of the respondents disagreed 6.0% of the respondents were neutral 44.0%
of the respondent agreed while 32.0% of the respondents strongly agreed on the same. It was also
established that electronic banking Electronic Payments Services facilitates reduction in financial
fraud and in relation to this 26.0% of the respondents disagreed 15.0% of the respondents were
neutral 46.0% of the respondents agreed while 4.0% of the respondents strong agreed on the
same. The findings have been illustration on the table 4.3 below.
Table 4.3 Effect of Electronic Payments Services on competitive advantage of commercial
banks in Eldoret
Statement SD D N A SA ∑fx ∑fx/
n
f % f % f % f % f %
Contributes to increase in customer 7 24.0 3 6.0 24 50.0 10 20.0 169 3.8
deposits to the organization
Its use contributes to reduction 16 48.0 7 15.0 21 58.8 189 4.3
in duplication of accounting
entries
It improves time management in 4 8.0 23 58.0 17 34.0 213 4.4
customer service delivery
Improves operational financial 9 18.0 3 6.0 16 44.0 16 32.0 171 3.9
operations in the banks
Electronic Payments Services 13 26.0 7 15.0 22 46.0 2 4.0 141 3.2
facilitates reduction in financial
fraud
4.2.2 Effect of Automated Teller Machines on competitive advantage of commercial banks
in Eldoret
In relation to the effect of Automated Teller Machines on competitive advantage of commercial
banks in Eldoret it was established that Automated teller machines provides financial
accessibility to areas where banks are inaccessible was an effect where 72.0% of the respondents
agreed 28.0% strongly agreed on the same. ATM facilitates reduction in inefficiencies of
customer queuing was also noted to be an effect where24.0% of the respondents disagreed
14.0% of the respondents were neutral 46.0% agreed while 16% of the respondents strongly
agreed on the same. In relation to ATM provides financial accessibility to customers as an effect
2.0% of the respondents were neutral 58.0% strongly agreed while 20% of the respondents
strongly agreed on the same. It was also established that ATM systems contributes to effective
financial accountability to banks through documenting transactions posed an effect in the
performance among the Commercial banks in Eldoret and in relation to this 6.0% of the
respondents were neutral 60.0% of the respondents agreed while 54.0% of the respondents
strongly agreed on the same. The findings also established that job security was also an effect
where 10.0% of the respondents were neutral 76.0% of the respondents agreed while 14.0% of
the respondents strongly agreed on the same. The findings have been illustrated on the table 4.4
below.
Table 4.4 effect of Automated Teller Machines on competitive advantage of commercial
banks in Eldoret
Statement SD D N A SA ∑fx ∑fx/
n
f % f % f % f % f %
Automated teller machines 30 72.0 14 28.0 190 4.3
provides financial accessibility
to areas where banks are
inaccessible
ATM facilitates reduction in 9 24.0 7 14.0 20 46.0 8 16.0 177 3.5
inefficiencies of customer
queuing
ATM provides financial 1 2.0 23 58.0 20 20.0 195 4.4
accessibility to customers
ATM systems contributes to 3 6.0 30 60.0 21 54.0 204 4.6
effective financial accountability
to banks through documenting
transactions
Job security 5 10.0 32 76.0 7 14.0 198 4.5
4.2.3 Effect of Electronic Payments Services on competitive advantage of commercial banks
in Eldoret
On the second objective which was meant found the effect of Electronic Payments Services on
competitive advantage of commercial banks in Eldoret by Airads Institute, Eldoret Branch it was
established that public relation practitioners Electronic Payments Services application reduces
paper work costs in the organization the findings were as follows, 24.0% of the respondents
disagrees 6.0% were neutral 50.0% of the respondents agreed while 20.0% of the respondents
strongly agreed on the same. It was also established that public relation practitioners Its use
contributes to reduction in duplication of accounting entries, 48.0% of the respondents disagreed
in their views 15.0% were neutral while 58.8% of the respondents agreed on the same. It was
also established that public relation practitioners enhances togetherness Smart card technology
allows for ease in documentation of accounts processes over time in relation to this response
was follows, 8.0% of the respondents were neutral 58.0% of the respondents strongly agreed
while 34% of the respondents strongly agreed on the same. It was also established that public
relation practitioners Electronic Payments Services use by customers reduces cases of cash theft
and in relation to this, 18.0% of the respondents disagreed 6.0% of the respondents were neutral
44.0% of the respondent agreed while 32.0% of the respondents strongly agreed on the same. It
was also established that public relation practitioners reduction in duplication of accounting
entries and in relation to this 26.0% of the respondents disagreed 15.0% of the respondents were
neutral 46.0% of the respondents agreed while 4.0% of the respondents strong agreed on the
same. The findings have been illustration on the table 4.3 below.
Table 4.3 Effect of Electronic Payments Services on competitive advantage of commercial
banks in Eldoret
Statement SD D N A SA ∑fx ∑fx/
n
f % f % f % f % f %
Electronic Payments Services 7 24.0 3 6.0 24 50.0 10 20.0 169 3.8
application reduces paper work
costs in the organization
Its use contributes to reduction 16 48.0 7 15.0 21 58.8 189 4.3
in duplication of accounting
entries
Smart card technology allows 4 8.0 23 58.0 17 34.0 213 4.4
for ease in documentation of
accounts processes over time
Electronic Payments Services 9 18.0 3 6.0 16 44.0 16 32.0 171 3.9
use by customers reduces cases
of cash theft
Reduction in duplication of 13 26.0 7 15.0 22 46.0 2 4.0 141 3.2
accounting entries
4.3 Discussion of the findings
In regard to Effect of Mobile banking on competitive advantage of commercial banks in Eldoret,
it was established that Facilitates efficiency in delivery of cash to the customers was one of the
effects used by Commercial banks in Eldoret and in relation had a mean of 5.0. It reduces
chances of financial fraud was also one the effects used by Commercial banks in Eldoret and the
findings in relation to this had a mean of 4.2. It was also established that contributes to effective
accountability of financial management to an organization was also one of the strategies adopted
by Commercial banks in Eldoret and in relation to this had a mean of 4.4. Improves financial
access to customers in areas where banks are inaccessible was adopted by Commercial banks in
Eldoret and the findings in regard this had a mean of 5.0.
On the second objective which was meant found the effect of Electronic Payments Services on
competitive advantage of commercial banks in Eldoret by Commercial banks in Eldoret it was
established that electronic banking Contributes to increase in customer deposits to the
organization with a mean of 3.7. It was also established that electronic banking its use
contributes to reduction in duplication of accounting entries, with a mean of 3.7. It was also
established that electronic banking improves time management in customer service delivery in
relation to this response was followed with a mean of 4.3. It was also established that electronic
banking improves operational financial operations in the banks and findings in relation to this
had mean of 3.9. It was also established that electronic banking Electronic Payments Services
facilitates reduction in financial fraud and the findings in relation to this had a mean of 3.0.
In relation to the effect of Automated Teller Machines on competitive advantage of commercial
banks in Eldoret it was established that Automated teller machines provides financial
accessibility to areas where banks are inaccessible was an effect with a mean of 4.3. ATM
facilitates reduction in inefficiencies of customer queuing was also noted to be an effect with a
mean of 3.5. ATM provides financial accessibility to customers were also found to be an effect
with a mean of 4.4. It was also established that ATM systems contributes to effective financial
accountability to banks through documenting transactions posed an effect in the performance
among the Commercial banks in Eldoret with a mean of 5.3. The findings also established that
job security was also an effect with a mean of 4.0

CHAPTER FIVE
SUMMARY CONCLUSION AND RECOMMENDATION
5.1 Summary
In relation to Effect of Mobile banking on competitive advantage of commercial banks in
Eldoret, it was established that Facilitates efficiency in delivery of cash to the customers was one
of the effects used by Commercial banks in Eldoret. It reduces chances of financial fraud was
also one of was one of the effects used by Commercial banks in Eldoret. It was also established
that contributes to effective accountability of financial management to an organization was also
one of the strategies adopted by Commercial banks in Eldoret. Improves financial access to
customers in areas where banks are inaccessible were adopted by Commercial banks in Eldoret.
On the second objective which was meant found the effect of Electronic Payments Services on
competitive advantage of commercial banks in Eldoret by Commercial banks in Eldoret it was
established that electronic banking Contributes to increase in customer deposits to the
organization . It was also established that electronic banking Its use contributes to reduction in
duplication of accounting entries. It was also established that electronic banking improves time
management in customer service delivery . It was also established that electronic banking
improves operational financial operations in the banks. It was also established that electronic
banking Electronic Payments Services facilitates reduction in financial fraud.
In relation to the effect of Automated Teller Machines on competitive advantage of commercial
banks in Eldoret it was established that Automated teller machines provides financial
accessibility to areas where banks are inaccessible was an effect. ATM facilitates reduction in
inefficiencies of customer queuing was also noted to be an effect faced by Commercial banks in
Eldoret ATM provides financial accessibility to customers was also found to be an effect. It was
also established that ATM systems contributes to effective financial accountability to banks
through documenting transactions posed an effect in the performance among the Commercial
banks in Eldoret. The findings also established that job security was also an effect.
5.2 Conclusion
In regard to Effect of Mobile banking on competitive advantage of commercial banks in Eldoret,
it can be concluded that Facilitates efficiency in delivery of cash to the customerswas one of the
effects used by Commercial banks in Eldoret. It reduces chances of financial fraud should also be
adopted as one of the PR strategies by Commercial banks in Eldoret. It was also being concluded
thatcontributes to effective accountability of financial management to an organization is also one
of the strategies that should be adopted by Commercial banks in Eldoret. Improves financial
access to customers in areas where banks are inaccessible were adopted by Commercial banks in
Eldoret.
On the second objective which was meant found the effect of Electronic Payments Services on
competitive advantage of commercial banks in Eldoret by Commercial banks in Eldoret it was
concluded that electronic banking Contributes to increase in customer deposits to the
organization among the members of Commercial banks in Eldoret. It was also concluded that
electronic banking can help members to deal with crises when they occur. It was also established
that electronic banking improves time management in customer service delivery . It was also
established that electronic banking improves operational financial operations in the banks. It was
also established that electronic banking Electronic Payments Services facilitates reduction in
financial fraud.
In relation to the effect of Automated Teller Machines on competitive advantage of commercial
banks in Eldoret the findings established that Automated teller machines provides financial
accessibility to areas where banks are inaccessible were an effect faced by Commercial banks in
Eldoret. ATM facilitates reduction in inefficiencies of customer queuing was also noted to be
effect ATM provides financial accessibility to customers were also found to be an effect. ATM
systems contributes to effective financial accountability to banks through documenting
transactions also posed an effect in the performance among the Commercial banks in Eldoret.
Finally it was noted that job security was also an effect since most of them were not able to read
and write.
5.3 Recommendation
From the findings researcher can recommend that Commercial banks in Eldoret should seek for
more donors who can support them financially so that they run their project with any problem.

APPENDIX I: QUESTIONNAIRE
Please note
-Tick where appropriate
Key: S.A (Strongly Agree), A (Agree), S.D (Strongly Disagree), D (Disagree), NS (Not sure)
PART A: BACKGROUND INFORMATION
1. What is your Gender?
a) Male

b) Female

2. What is your age bracket?

a) 20-30 years

b) 31-40 years

c) 41-50 years

d) Above 50 years

3. What is your level of education?

a) Diploma

b) Undergraduate

c) Masters
4. How long have you worked in this organization
a) Less than a Year
b) 1-3 Years
c) 3-5 Years
d) More than 5 Years

5. Which section do you work in ?

a) Top managers
b) Credit officers
c) Teller
d) Marketing

SECTION TWO: SPECIFIC OBJECTIVES

6 What is the effect of Mobile banking on financial performance of commercial banks

Mobile banking 5 4 3 2 1
Facilitates efficiency in delivery of cash to the customers
It reduces chances of financial fraud
It contributes to effective accountability of financial
management to an organization
It improves financial access to customers in areas where banks
are inaccessible
7 What is the effect of Electronic Payments Services on financial performance of
commercial banks
Credit card 5 4 3 2 1
It contributes to increase in customer deposits to the
organization
It improves time management in customer service delivery
It improves operational financial operations in the banks
Electronic Payments Services facilitates reduction in
financial fraud
8.What is the effect of Automated Teller Machines on competitive advantage of commercial
banks in Eldoret
Automated Teller Machines 5 4 3 2 1
Automated teller machines provides financial accessibility to
areas where banks are inaccessible
ATM facilitates reduction in inefficiencies of customer
queuing
 ATM provides financial accessibility to customers
ATM systems contributes to effective financial accountability
to banks through documenting transactions
Job security
9 What is the effect of Electronic Payments Services on financial performance of
commercial banks?
Smart card 5 4 3 2 1
Electronic Payments Services application reduces paper work
costs in the organization
Its use contributes to reduction in duplication of accounting
entries
Smart card technology allows for ease in documentation of
accounts processes over time
Electronic Payments Services use by customers reduces cases of
cash theft
reduction in duplication of accounting entries