CHALLENGES FACING THE IMPLEMENTATION OF CLEARING SYSTEM UPGRADE PROJECTS IN KENYA: A CASE STUDY OF THE DIRECT DEBIT AUTOMATION IN SELECTED COMMERCIAL BANKS

MATENZAWA Beatrice Wanza, WERE Susan

Abstract


Abstract: Banks nowadays are faced with enormous challenges such as very fierce competition among the financial institutions, knowledgeable customers who are very demanding, thus calling for the development of new products and delivery of more varied and complex delivery channels. Faced with such challenges, banks have no other choice other than to modernize both their operating models and technology components if they are expecting any growth. If they do not do so, they will have failed in terms of satisfying customers, maintaining revenues and profits as well as pleasing the shareholders. The primary purpose of this study was to investigate the challenges facing the implementation of clearing system upgrade projects in Kenya. The study specific objective was to examine and evaluate how project planning, resource management, stakeholders’ participation and communication systems affect the implementation of clearing system upgrade projects in Kenya. The study employed a descriptive survey design. The target population was 110 respondents comprising of both the clearing and IT departments staff from selected commercial banks in Nairobi. A purposive sampling method was used to select the clearing and IT staff as they were considered to have the required information to meet the objectives of the study. Questionnaires were used in data collection, and they were administered via drop and pick method. Collected data was analyzed using descriptive statistics aided by Statistical Package (SPSS version 21), and the presentation of the results was in the form of frequency tables, pie charts, percentages and bar charts. The study found that communication systems had a positive and significant influence on the implementation of clearing system upgrade projects (β1=0.465, p-value=0.000). In addition, the study found that stakeholder participation has a positive and significant influence on the implementation of clearing system upgrade projects (β2=0.385, p-value=0.000). The study also found that resource management has a positive and significant influence on the implementation of clearing system upgrade projects (β3=0.218, p-value=0.010). Lastly the study found that project planning has a positive and significant influence on the implementation of clearing system upgrade projects (β3=0.506, p-value=0.000). Based on the findings, the study recommends that since resources are vital to projects of such nature, the management should make sure there are enough and well-trained personnel to carry on such projects. Also planning should be done before the commencement of such projects so that each and every one is briefed of the scope, objectives, and strategies to be employed during the project. In conclusion, further studies are called for as the study did not encompass all the banks in Kenya and feedback should be sought from other stakeholders such as customers and the project implementers’ such as Kenya Bankers Association and Central Bank of Kenya.

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