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.