Strategic factors affecting the implementation of a new core banking system in Consolidated Bank of Kenya
The CBS implementation over the past few decades witnessed that many of the early installations were either inflexible or took unacceptably long implementation time due to high level of customizations to meet the specific requirements of each Bank. It is estimated that about 40% of software system implementations have failed globally. None of the local studies did focus on strategic factors affecting the implementation of a new core banking system among Commercial Banks in Kenya. Therefore, this study sought to answer the following research question; what are the strategic factors affecting the implementation of a new Core Banking System in Consolidated Bank of Kenya? This study used a case study research design. The study made use of interview guide to collect the primary data. The interview guide was administered to 8 top management employees in Consolidated Bank of Kenya. The study involved collection of qualitative data. Content analysis was used to analyze qualitative data from the open ended questions. From the findings, the study concludes that Consolidated Bank of Kenya was implementing a new core banking system from the Bank Master system to Intellect system. the strategic factors affecting the implementation of a new core banking system in Kenyan banks include: top management support, project team competence, interdepartmental co-operation, clear goals and objectives, project management, inter-departmental communication, management of expectations, project champion, vendor commitment and support, vendor knowledge transfer, end user involvement, careful package selection, data analysis and conversion, dedicated resources, steering committee, user training, education on new business processes, business process re-engineering, minimal customization, architecture choices, change management, vendor partnership, vendor tools, use of consultants and supervision by the board. The study recommends that the management of Consolidated Bank of Kenya should come up with measures to address the reported internal challenges in the new CBS implementation. The communication should be enhanced between all stake holders in the process of new CBS implementation. The banks management should continue to lender their support and guidance to the banks’ staff during the whole process of new CBS implementation.