The service concept location and performance in retail banking in kenya
Abstract
Retail banking traditionally offers two major categories of services namely deposits
and advances. These two core banking services have been the main gauge for
performance and source of profit for banks worldwide. Service system design
provides a needed insight into the issues relating to the service products themselves
and the effect of this service concept on suitability of a given product and its
performance. The study sought to establish if the two service products can be
classified into one category and if common service design in many retail banks can be
justified.
In survey of several branches of one bank, the study finds that two core bank service
products ought to be treated differently when decision on service design are being
made. While deposits appear to fall within the classification of maintenance
interactive services, advances services can be more appropriately grouped as task
interactive services. The study also establishes a relation between service concept
location and performance of both service products. The study concludes that the two
products require different service delivery systems and hence optimization failure
would be expected if a common service concept is designed for them as is commonly
the case.
Publisher
University of Nairobi School Of Business, University Of Nairobi