Determinants of Technological Innovation Adoption and Banking Operations of Some Selected Commercial Banks in Somalia

Abstract

It's amazing to see how technology is transforming the financial industry. From accounting to management, technology has revolutionized all aspects of banking, and customers are benefiting from better and more streamlined services. The aim of this study is to explore the impact of technological innovations on the operations of commercial banks in Somalia. Through a cross-sectional survey of licensed bank employees, this study investigates the relationships between perceived ease of use, compatibility, and IT infrastructure in shaping banking operations. Employing the Yaro Yamane formula, a sample size of 196 was determined for the survey. Data was analyzed using SPSS and SmartPLS, revealing that IT infrastructure and perceived ease of use have a significantly positive influence on banking operations, while compatibility had insignificant relations with banking operations. These findings align with previous research, indicating that advanced technology enhances customer experience, interconnects banking systems, improves efficiency, and fortifies security measures. This study recommends collaborative efforts between the Somali government and the Central Bank to enhance security measures and combat fraud in electronic banking, thereby fostering investor confidence and facilitating economic growth. The research contributes to the ongoing transformation of the Somali banking sector through insightful determinants of technological innovation adoption.