P15/6165/2005

2015

OKETCH

Linda Aduol

Sacco Web-Based Management Information System (A Case Study of Kisumu Teachers Sacco

With the rapid globalization of the Kenyan economy, enterprises are faced with the ever changing competitive environment. Enterprises are
adopting strategies aimed at developing competitive advantage based on enhanced customer value in terms of product differentiation, quality,
speed, service and costs. In the recent past, the Kenyan financial service sector has witnessed a complete metamorphosis and technology is
playing a very significant role in this record. Over the last decade Kenya has been one of the fastest adopters of information technology,
particularly because of its capability to provide software solution to organizations.
This capability has provided a tremendous impetuous to the domestic banking industry in Kenya to deploy the latest in technology, particularly in
the Internet banking and e-commerce arenas.
Banks are growing in size by mergers and acquisitions, which have been driven by
communication and technology. Technology is playing a major role in increasing the efficiency, courtesy and speed of customer service. It is said
to be the age of E- banking. An Online Banking user is expected to perform at least one of the following transactions online:
· Checking account balance
· Transactions-Apply for loan
· Request statement
From a bank’s perspective, using the Internet is more efficient than using other distribution mediums because banks are looking for an increased
customer base.
Using multiple distribution channels increases effective market coverage by enabling different products to be targeted at different demographic
segments. Also
Banks cannot risk losing customers to competitors within the aggressive competition in the banking industry around the world. Moreover Internet
delivery offers customized service to suit the needs and the likes of each user. Mass customization happens effectively through Online Banking. It
reduces cost and replaces time spent on routine errands with spending time on business errands. Online Banking means les staff members, smaller
infrastructure demands, compared with other banking channels. From the customer’s perspective, online Banking provides a convenient and
effective way to manage finances that is easily accessible 24 hours a day, seven days a week. Nevertheless online Banking has disadvantages for
banks like how to work the technology, set-up cost, legal issues, and lack of personal contact with customers. And for customers there were
security and privacy issues.

Samuel Ruhiu