Strategies adopted by Commercial Banks in Kenya in their retail banking
Abstract
This study sought to investigate the strategies adopted by commercial banks in their retail
banking. The study targeted the 20 commercial banks engaged in retail banking.
Response was received from 11 banks out of the 20 banks constituting a response rate of
55%.
The data was collected with the help of a personal interview guide. The data was then
analyzed by use of a statistical package for social sciences (SPSS) and presented in form
of percentages, frequency tables, mean and standard deviation.
Banks that adopted a differentiation focus or cost focus strategy accounted for 65% of the
total, while those that adopted a broad strategy using cost leadership accounted for 35%.
The reason why most banks adopted a focus strategy was because they had a medium
size branch network that was only idle for a focus strategy.
Overall most banks have performed well in retail banking with some exceeding their
target customer numbers in the last two years. Profitability contribution of retail banking
to overall bank performance for most banks was over 30%. The success in retail banking
was achieved due to development of strategies that met the market requirements. Those
that adopted a cost strategy were able to reconfigure their processes to reduce costs and
then pass over the benefit to their customers. Those that adopted a differentiation focus
strategy were able to provide convenience to their customers.
Citation
Masters Of Business Administration (MBA) Degree, University of NairobiPublisher
University of Nairobi School of Business
Description
A Management research project submitted in partial fulfilment of the requirements
of the Degree of Master of Business Administration (M.B.A), School of Business,
University of Nairobi.