Fintech products and customer experience in the banking sector in Kenya:

Abstract

This study investigated the effects of Fintech products on customer experience in the banking sector in Kenya, focusing on Equity Bank's Fintech offerings. The specific objectives include assessing the effects of product convenience, service cost, service quality, and product feature multiplicity on customer experience as well as their combined effect on customer experience. Guided by the Technology Acceptance Model (TAM), Schumpeterian Innovation Theory, and Social Exchange Theory, the study targeted Equity Bank customers utilizing various Fintech products such as Equity Mobile banking, Equitel STK, USSD *247#, and Merchant services. A sample size of 73 respondents was determined using the Yamane Formula, with stratified sampling employed for data collection. Both primary and secondary data collection methods were utilized, and descriptive statistics, and inferential analysis including correlation and regression analysis were utilized to gain insights on the data. The findings reveal a positive correlation between the independent variables (service cost and product features) and the dependent variable (customer experience), while product convenience and service quality were found to be insignificant. There was a positive correlation between service cost and customer experience with (Beta = 0.847; p < .000); and there was also a positive correlation between multiplicity of product features and customer experience with (Beta = 0.798; p < .000). Recommendations include the development and enforcement of comprehensive guidelines for Fintech product offerings by banking regulatory authorities in Kenya. Additionally, the findings emphasize the importance of offering convenient, high-quality Fintech products to meet customer expectations and enhance competitiveness in the banking industry's digital landscape. Understanding and optimizing these factors can enable Equity Bank to deliver superior customer experiences and strengthen its market position.