Credit Operation–Based Strategies And Operational Performance Of Kenyan Credit Reference Bureaus
CRBs have placed the full market information at the reach of credit institutions to help instantly identify risky and fraudulent applicants and also help lenders acquire more profitable consumers faster at a lower cost. In Kenya, the performances in the financial institutions has been weak due to lack of competence or inappropriate implementation strategies or operation and performance of in the existing CRBs. Furthermore, past research has not fully identified the operations and performance of CRBs in Kenya. The research questions would thus be: What are the Credit Operations-Based Strategies commonly used by Kenyan CRBs? Is there any relationship between Credit Operations-Based Strategies and Operational Performance of Kenyan CRBs? This study adopted a descriptive research design. The target population was 200 employees working in the three CRBs in Kenya. Stratified random sampling technique is used to selected the study sample of 100 respondents. The researcher used questionnaires in data collection. Data collected was analyzed both quantitatively through descriptive statistics and qualitatively through content analysis while inferential statistics (Chi-test) was used to establish the relationship. Based on the study findings, the study concludes that; KCRBs had adopted differentiation and diversification as Credit Operations-Based Strategies to a great extent which enhanced quality of service offered, customer satisfaction and increased market share. The capability as a Credit Operations-Based Strategy had also been adopted by majority of the KCRBs. Through capability strategy, the KCRBs achieved teamwork, increased employee motivation and synergy among the staff in delivering the organizational goal. The operational performance of majority of KCRBs was enhanced by the Credit Operations-Based Strategies that they were implementing. The implementation of Credit Operations-Based Strategies by KCRBs contributed to increase in their operational performance. From the chi-test, there is a strong positive relationship between Credit Operations-Based Strategies and operational performance of Kenyan Credit Reference Bureaus. The study recommends that management of the KCRBs should continue to invest in Credit Operations-Based Strategies to ensure that they secure optimal Operational Performance. The KCRBs who have just begun to gain the benefits of Credit Operations-Based Strategies should scale up the strategy implementation to accrue additional benefits from the implementation of this strategy.
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