Strategic Reasons Leading Commercial Banks in Nairobi to Use Shopping Malls as Extensions of Bank Branch Network

Abstract

The key purpose for the study was to establish the Strategic reasons leading commercial banks in Nairobi to use shopping malls as extensions of bank branch networks. The study investigates the influential factors affecting location of bank branches in the shopping malls and the challenges faced in locating bank branches in malls. In the study descriptive survey was used. This type of survey is a scientific method that involved observing and describing strategic reasons leading commercial banks in Nairobi to use shopping malls as extensions of bank branch network. The targeted population was commercial banks in Nairobi with branch networks in the shopping malls. A sample of 33 respondents was used to obtain data. Data was gathered using a questionnaire. The questionnaire contained relevant questions that were composed from relevant research and researcher questions. Data was collected from primary and secondary sources. Simple regression model was applied in determining the level of influence independent variables have on dependent variable. The study found out that overall bank management, changes in bank roles, total number of deposits, average deposit value, shareholders’ equity, customer convenience and value of outstanding loans influence branch network as it strives to extend its branches in shopping malls. Technological changes and regulatory innovations have limited banking institutions’ opening branches in shopping malls to deliver financial services. The study concludes that the regression model was good for foresting and could be used for prediction of strategic reasons leading commercial banks in Nairobi to use shopping malls as extensions of bank branch network