An Investigation Of The Impact Of Exclusive Banking On Customer Attraction In Commercial Banks; The Case Of Kenya Commercial Bank Of Kenya In Nairobi Province

Abstract

The purpose of this research was to investigate the impact of exclusive banking on customer attraction in Commercial Banks. This was a case of KCB and BBK in Nairobi Province. The main objectives of the study were to identify the nature of exclusive banking services that influence customers in Commercial Banks, to determine the main methods of implementing exclusive banking for customer attraction at KCB and BBK and to establish customers' opinion on their experience in the use of Exclusive Banking products. The statement of the problem is based on the fact that limited research has been undertaken in the field of exclusive banking, thereby leaving a knowledge gap. There is therefore a need for a study to fill this gap. At the same time the ever changing business environment in the banking industry has seen increased competition which requires the banks to come up with competitive response strategies. Exclusive banking is one of them towards this end. In addition, the globalization changes in banking have seen a change in customer tastes and preferences in line with international trends, hence the need for a study in exclusive banking to establish its impact on customer attraction. It is hoped that the research findings will be of great significance to the bank's top management who will get insight on exclusive banking as a competitive strategy as well as to the customers who will get an understanding of what this service entails. Besides, research will act as a basis for further research for researchers interested in the banking industry. The study was descriptive in terms of design. The descriptive survey used both quantitative and qualitative approaches in which data was collected on the basis of the objectives of the study. The researcher collected data by use of questionnaires. The data collected was analyzed by use of SPSS and presented by use of descriptive statistics such as the measures of central tendency and measures of dispersion. From the analysis it was found out that exclusive banking takes the nature of telephone banking, internet banking and exclusive ambient space. Besides, exclusive banking offers customers attractive competitive service such as preferential service, no queuing and a true customer relationship experience as a basis of attracting them, among others. In conclusion exclusive banking in Nairobi is indeed the fastest growing services offered by commercial banks. It offers more emphasis on customer first in offering greatest value in terms of quality products and services to the customer besides the utilization of information technology as a cost leadership strategy in this service. The study suffered from limitations of lack of enough funding and time to exhaustively carry out the research to its logical conclusion. For this reason, the researcher recommends that research is undertaken on product development in exclusive banking