An evaluation of external communication strategies adopted by banks in Kenya

Abstract

The purpose of this research was to evaluate the external communication strategies adopted by banks in Kenya. The objectives of the study was to establish the external communication strategies used by banks in Kenya, their effectiven~ss and hindrances to effective communication. The study found out various external communication strategies adopted by banks in Kenya to communicate to external publics. For instance strategies used to communicate to external publics involves: web site, community social responsibility, sponsorships, sporting events, cause- related marketing and product publicity. The literature review of the study gave an insight of the external communication strategies adopted by banks towards external publics. The study also gave a review of depositors' attitude towards banking with regard to bank failures and also the strategies targeting an increase in knowledge of customers. The study used both primary and secondary methods of collecting information that is, using questionnaires and interviews. The research methodology and design involved both quantitative and qualitative data analysis.

The population sample comprised of two hundred bank depositors and one hundred bank employees, with fifteen key informants from bank employees for in depth interviews. The sampling frame appropriate to this study was simple random sampling. The study revealed that banks employ different external communication strategies to make their communication to depositors and creditors effective, however a lot still needs to be done to make communication better as evidenced by a number of respondents who thought that their banks communication strategies were ineffective. The study recommends that, although banks are doing well in terms of informing depositors on useful information a lot still needs to be done for instance engaging services of opinion leaders when there's useful information to be passed across in rural areas. Making follow ups whenever information is sent to depositors and creditors, using public awareness campaigns to inform depositors, negotiating with government on infrastructure and also involving ICT in their day to day communication, Finally the study concludes that a lot still needs to be improved to make communication better and effective, for instance banks need to make follow ups on useful information sent to depositors and creditors, also banks need to adopt ICT as a means of communication in its daily activities and finally banks need to involve opinion leaders in their rural communication.