The Influence of Product Innovation Strategies on the Performance of Equity Bank Limited in Kenya

Abstract

This study set out to determine the influence of product innovation strategies and performance of Equity Bank Limited. A case study research design was used where primary data was collected with the help of an interview guide. This data was analyzed using content analysis technique. The study found that agency banking; mobile banking and internet banking product innovation strategies were the most popularly used by Equity Bank Limited. However, use of ATMs the least applied product innovation strategy; this is because the bank preferred the use of alternative delivery channels using modern technologies to boost efficiency and reduce operational costs. It was further discovered that product innovation strategy improved customer relationship with the bank; it also enhanced decision making processes and minimized customer complaints. The study recommends that Equity bank Limited should consider investing more in technological advances and research and development to maintain competitiveness and overall bank performance. The bank should also sponsor its employees to a continuous training and development programme in order to expose them to specialized skills and competencies that nurture their creativity and enhance efficiency. One of the major limitations of this study was time and cost that restricted the scope of the researcher to a case study of Equity Bank Limited. Secondly, this study limited itself to open-ended questions; these types of questions are highly exposed to bias and thus might have affected the accuracy and reliability of the findings obtained. Finally, the study recommends that a similar study should be conducted in all the commercial banks in Kenya, this will enable the researchers to compare product innovation strategies used by commercial banks and their contribution towards improving bank performance.