| dc.description.abstract | Credit Bank Limited is one of the banks in Kenya and thus faces the challenges in the banking sector both from competition from other banks and other players within and outside the banking sector. The objective of this study was to establish the strategic responses adapted by Credit bank to the changing environment in the banking sector in Kenya with emphasis on competition and regulatory environments. Operating in dynamic internal and external environments and as a niche Bank, Credit Bank had to review its strategies in response to these changes to enable it remain relevant in the industry and retain its market share. This was a case study since the unit of analysis was one organization and data was collected using selfadministered interview guide with open-ended questions. The respondents of this study were the senior staff members who included top, middle and lower level managers working at Credit Bank Limited. A content analysis content analysis was used to analyze the respondents’ views about the strategic responses adopted by Credit Bank to the changing environment in the banking sector in Kenya. The study identifies various changes in the Banks’ operating environment including the increased and stringent regulatory requirements, shift towards Information Technology products and services, increased competition from traditional players and non-traditional players in the banking sector, innovation of new products and banking models with more emphasis on mass markets leading to aggressive competitor behavior. The information in the market is also easily available making the customer more enlighten and demanding on their requirements. The Study identifies the responses by Credit bank to include expanding the branch network for a wider reach to existing and potential, increasing the capital base to enhance the lending capacity, acquiring a robust core banking software, change of leadership and recruiting of more professionals to steer the bank, ensure corporate governance and enhance customer confidence, involvement in
research and development to identify and meet the customer needs, refurbishment, rebranding and undertaking aggressive marketing campaign to increase visibility in the market. The study recommends that more proactive responses should be adopted including comprehensive research and development be done continuously in all institutions, opportunities for strategic alliances and partnerships, mergers and acquisitions to provide competitive edge should be explored, adoption of the agency banking model introduced by the Central Bank of Kenya and embracing the Credit Reference Bureau enabling free sharing of information on fraudulent customers by creating a shared database across the sector in Kenya. Key words: Strategic response, changing environment, banking sector, Kenya and Credit Bank Limited | en |
