Determinants of adoption of banc-assurance by commercial banks in Kenya
The study examined the determinants of adoption of Banc assurance by Commercial Banks in Kenya .The specific objective was guided by the influence of new revenue flow on adoption of Banc-assurance; the influence of business diversification on adoption of Banc-assurance: the effects of economies of scope on adoption of Banc-assurance by Commercial Banks in Kenya. The target population drawn from the 43 licensed commercial banks which comprise of 6 large banks, 15 medium sized banks and 22 small banks (Central Bank of Kenya Supervision Report, 2011). There is a significant relationship between adoption of Banc assurance by commercial Banks and Bank profitability, market share, bank sales and effective utilization of available resources. On the relationship between adoption of Banc assurance by commercial and determinants of adoption of Banc assurance, the study established that adoption of Banc assurance by commercial banks is influenced by need for new revenue stream, business diversification and economies of scope and that there is a significant positive relationship between need for new revenue stream, business diversification and economies of scope and adoption of Banc assurance by commercial banks. The determinant factor of the banc-assurance concept is to in the need of the banks and insurance companies to optimize its structure and the efficiency of the channels of distribution. If financial institutions are looking for additional income through turning to good account the potential of the territorial network, based on their own marketing policy, the insurance companies are interested in diversifying the possibilities of the traditional distribution, with no significant capital investment, thus a larger number of potential clients access the offered products and services An important influence on the adoption and implementation of the Banc assurance business is the tight integration of the sales force into the branch network so as to effectively sell a broad range of products hence banks need to invest in training in banking, insurance and investment product knowledge so as to enhance the sales process.