Retail banking strategies and performance of commercial banks in Kenya
The objective of this study was to establish the retail banking strategies and their effect on performance in the commercial banking sector. The study used descriptive research design approach which involves identifying the characteristics of an observed phenomenon or exploring possible correlations among two or more phenomena. The study used the census approach in sampling all the 43 retail banking managers of the targeted commercial banks. These formed the unit of analysis of the study. The method of data collection was through questionnaires as the main data collection instrument. The collected data was sorted according to different categories. Before processing the responses, the completed questionnaires were edited for completeness and consistency. The raw data from questionnaires was checked for completeness, errors, and coded for analysis using Statistical Package for Social Sciences. Quantitative data was presented using tables, graphs, pie charts and figures appropriately while the open-ended questions was analyzed by use of content analysis. The study concludes that retail banking activities had enabled the retail managers to realize most of the financial aspects in the banking industry, had a well understanding that every activity in retail banking had a value to the overall performance of the bank and that if one activity failed, it would make another to fail. The study concludes that performance of commercial banks can be placed at 95%, in region East Africa at 93% and globally at 85% respectively on application of effective retail banking strategies. It was also evident that retail managers were aware of value chain (products development, improvement etc) strategies, marketing strategies, HR strategies, public relations management strategies, business acquisition, Customer care and Operational Strategies, diversification strategies, ICT strategies and Financing strategies which influenced the overall performance of their respective commercial banks to a great extent. Customer Satisfaction in their respective commercial banks was high and that retail banking managers were satisfied to a large extent on the way customers were treated in their banks with the use of effective customer handling strategies. The study also concluded that; public relations management has been enhanced which have attracted a bigger market in the East Africa and other countries in the globe (Diaspora banking in some cases), acquisition of businesses is always done with critical evaluation on global business situation, customer care and related activities have been enhanced, the use of effective ICT and related infrastructure has enabled the management to achieve where it was not possible for example, mobile money transfers, clear checks, online banking etc.), effective financing towards diversification projects has seen the share market of this bank grow globally, the bank management has ensured improved value chain (products development, improvement etc), good global marketing strategies has enhanced the performance of various products that we sell in this bank and that the human resources department is well aware of the changes in human resources management globally. To a great extent had enhanced new products development, return on assets, staff increase, customer satisfaction, acquisition and merger, market share, profitability, shareholder value and Increased no of branches. Key words: Retail banking, performance, strategy, commercial banking.