Innovation of Mobile Banking Andcustomer Loyalty of Commercial Banks in Mombasa County, Kenya

The purpose of the study was to establish the innovation of mobile banking on customer loyalty of commercial banks in Kenya. The study theoretical constructs included transaction cost, mobile banking security, service reliability and interface usability. The study was anchored on technology acceptance model, task technology fit theory and transaction cost theory. The study used a descriptive cross-sectional survey research design. The study targeted the management staff drawn from ICT, Operations, Finance, Marketing, and Retail banking of all the seven tier 1 commercial banks with operations in Mombasa County as the unit of observation. Stratified random sampling technique was used to select a sample size of 72 participants by help of Yamane statistical formula. Primary data was collected using structured questionnaire based on the objectives of the study. The collected data was edited, coded for processing using the Statistical Package for Social Sciences (SPSS v. 26) and results were presented in frequency tables. Descriptive and inferential statistics were used to analyze information generated from the respondents. The study findings revealed that mobile banking services were affordable and that customers of mobile banking were able to enjoy cost savings. The study concluded that commercial banks mobile banking services were widely accessible to the population and that the cost of transactions was determined by the amount transacted. The mobile banking of commercial bank is safe and secure and that banks mobile banking services platform offers transactions privacy to customers. Also commercial bank customers are notified of transactions on time firms. Respondents were in agreement to the statement that the customers were offered window to reverse transactions. The study concluded that banks mobile banking interface is compatible with multiple devices and that the provision of simple and easy to follow instructions during transactions. It is concluded that it is easy to complete a transaction through the banking application and that banks mobile banking service interface is responsive in that it can be accessed in every gadget. The study suggests that, in order to reduce operational expenses, the management of commercial banks should invest in digital technologies. The banks should seek to innovate to make their services affordable to customers. The study recommends that commercial banks should review current transaction costs so as to make mobile banking services widely accessible. The transaction costs should be relative to the amount transacted meaning that the frequent users who transact less amounts should be charged less and vice versa.