Precursors of Cloud Computing Adoption in Selected Banks in Kenya

Abstract

Purpose: The study analyzed the precursors of adoption of cloud computing in selected banks in Kenya. Specifically, the study sought to establish the effect of data security on adoption of cloud computing in selected banks in Kenya, to establish how organizational culture affects adoption of cloud computing in selected banks in Kenya, to establish how supplier lock- in affects adoption of cloud computing in selected banks in Kenya and to establish how regulatory policy affects adoption of cloud computing in selected banks in Kenya. Methodology: The study employed descriptive research design and inferential statistics. The target population was 366 ICT staff from 3 selected banks namely NCBA, KCB Bank and Equity bank. The selected banks had the largest market share according to published CBK supervisory report for year 2020. The sample size was 191 respondents. A structured questionnaire was used to collect the data. Responses in the questionnaires were tabulated, coded and processed by use of a computer statistical package for social sciences version 28 (SPSS) program to analyze the data. The responses from the open-ended questions were listed to obtain proportions appropriately and then reported by descriptive narrative. Descriptive statistics like mean, standard deviation were used. The ANOVA test was used to establish the findings from the study and results presented in graphs and charts. Findings: Cloud computing adoption was evaluated for the select commercial banks across three areas namely core-banking systems, middle office and compliance systems and back-office, data science and innovation systems over a period of five years. The respondents indicated that no more than one cloud computing project was either in planning, implementation, failed or completed stages, indicating that despite the perceived benefits of cloud computing there are precursors that need to be addressed if the commercial banks are to fully embrace cloud computing. Unique contribution to theory, practice and policy: In terms of policy, the  findings of the study will be important to regulators like CA, CBK and other institutions that regulate financial institutions in coming up with relevant guidelines when it comes to handling customer data within Cloud Computing environment. It gives banking sector perspective of some of the issues that require attention if the envisaged benefits of clod computing are to be fully realized. This is important not only to the policy makers but also to the cloud service providers . Additionally, the findings give a theoretical basis of validating the antecedents of cloud computing adoption in the banking sector in Kenya and this can be extended to the rest of the world. The findings give a practical perspective of the real concerns the banks have to contend with from a practical perspective and therefore very critical in advancement of cloud computing technologies.