Growth strategies adopted by Ecobank Kenya limited

Abstract

The banking industry is a very competitive one with many local banks coming up with strategies to grow in order to overcome the competition brought about by the environment. Ecobank is among the banks in the industry and over the past four years we have witnessed the bank grow and overcome a lot of competition to become one of leading bank in the country. The objective of the study was to identify the growth strategies adopted by Ecobank. Primary data was collected using an interview guide to the directors and heads of functions at the bank who totaled to seven. The interview guide sought to find out the strategies the bank used how and why they were used and also the challenges faced by the bank. Ecobank annual reports was also used for Secondary data. Content analysis was then used to analyze the data. Findings from the study saw that Ecobank used a number of growth strategies. Bank used Mergers with EABS enter the local market in 2008.Market development strategy where the bank has been able to venture into different markets segments within the country by introducing products to cater for each segment e.g. small and micro finance. Product development strategy has also been used by the bank, by improving on the already existing products by adding value added benefits and also by introducing new products within the market ie internet banking , when it comes to Partnership and alliances the bank has not been left behind Ecobank has partnered with KPLC and Nairobi water, Nakumatt Supermarket and Safaricom among others mainly to improve on services offered to customers. Ecobank has also been innovative by coming up with new IT systems to offer better services to customers. Mergers, market development, penetration and product development were considered the most important strategies because of the financial contribution the strategies have given to the bank, partnership and alliances and even innovation strategies were also considered important as the strategies enabled the bank increase and improve its customer base. Several challenges were encountered in the pursuit of growth some of which included high cost of advertising, challenges faced when venturing into jurisdictions i.e. legal and regulatory requirements