Uptake of digital lending in commercial banks: a case of Stanbic Bank metro region

Abstract

The study assessed factors hindering uptake of digital lending at Stanbic bank. It was guided by four research objectives which were to examine the administration and management of digital lending since its inception at Stanbic bank. Assess perception and attitude of customers of Stanbic bank towards digital lending at Stanbic bank, assess the challenges that affect effectiveness of digital lending Stanbic bank and the influence of uptake of digital banking on performance of the bank at Stanbic bank. The study adopted a descriptive design, in a cross-sectional manner and that used quantitative approaches. The study population included employees and customers of metro Stanbic Bank branches and specifically included employee and customers. Data was collected using questionnaire. data collected was analyzed using SPSS to obtain frequencies, percentages, means and factor analysis. It was found out that in terms of loan administration One must have transaction history to get a digital loan at Stanbic bank(mean=4.0) and the bank considers the monetary amounts transacted when awarding the digital loans (mean=3.8). Also, the bank considers the number of monetary transactions carried out periodically (mean=3.77). In terms of perceptions towards digital lending, people feel the digital loans have a shorter processing duration at Stanbic bank (mean=4.25) and people believe. The process of applying for digital loans with Stanbic Bank is convenient and user-friendly. The key challenges faced is that there is insufficient awareness and education about digital lending services hinder customer adoption at Stanbic Bank (mean=3.5). As an effect of digital lending on bank performance it was found out that in the last 4 years the bank has been publishing good profitability levels (mean=4.34) and The banks return on assets has greatly improved in the past few years (mean=4.12). it was concluded that Bank's digital lending operations prioritize the critical role of credit history and transaction history to determine loan eligibility. Customers generally have a positive perception of Stanbic Bank's digital lending services. There is a lack of flexibility in loan terms, and awareness and education about digital lending services appear to be insufficient. The uptake of digital banking has had a predominantly positive influence on the performance of Stanbic Bank. It was recommended that Stanbic bank should prioritize financial education initiatives aimed at helping bank customers build and maintain positive financial profiles, the bank should provide clear and easily accessible information about these aspects. Stanbic Bank should consider offering a range of loan products that cater to different customer needs, including varying loan amounts, repayment terms, and interest rate options.