Strategic Quality Management Practices and Provision of Mobile Loans in the Commercial Banks in Kenya

Abstract

As competition continue to grow in the mobile lending sector, commercial banks in Kenya must apply strategic approaches that newer players do and take advantage of their unique product bandwidth and strengths. Through strategic quality management (SQM) practices, mobile companies have developed services and products to meet customer expectations. However, in spite of high popularity, as well as widespread execution of these SQM practices by many commercial banks, some concerns and criticisms, emerged regarding their effectiveness and impact in enhancing quality performance by addressing customer needs, improving service delivery, and enhancing quality. The main goal of this research was to determine the influence of SQM procedures on the efficacy of mobile loan service in Kenyan commercial banks. The study's goal was to see how SQM practices affected perceived service quality, customer satisfaction, customer loyalty, and efficiency of mobile loans in Kenyan commercial banks. Kano theory and Kanter empowerment theory were used as a foundation for the research. The research used a descriptive research methodology and focused on six commercial banks that provide mobile lending services which were selected using purposive sampling technique. Data was gathered using a standardized questionnaire, and descriptive statistics and t-tests were used to analyze the information. The study findings indicated that the SQM practices adopted by commercial banks in Kenya influenced perceived service quality, improved customer satisfaction, influenced customer loyalty, and contributed to efficiency of mobile loans in commercial banks in Kenya. The research recommends that to enhance service quality of their mobile lending operations, commercial banks should focus on engaging in SQM practices such as strategic quality planning, employee training, and knowledge and process management. Besides, the study recommends to all commercial banks to have a customer focus and engage in continuous improvement, with an objective of actively participating in continuous development of its mobile lending processes, products and services. Lastly, the study recommends that commercial banks should actively engage in process and knowledge management. They should ensure that employees have timely, consistent, and accurate access to the mobile lending data and information they require to conduct their jobs successfully and efficiently in the commercial banks.