Organizational factors influencing performance of current accounts products: a case of standard chartered bank Kericho,Kenya

Abstract

Banking services have been growing in Kenya in the past few years due to the diversified account products that are tailored to meet the needs of customers. The performance of these account products depends on factors including organizational support. Past research studies have mentioned the role of organizational framework in supporting current account products in the banking sector. Some past studies had only focused on the development of current account products and how they had been used to promote loyalty and overall competitiveness. Little had been done on organizational factors influencing the performance of current account products. This study aimed to establish organizational determinants influencing performance of current account products guided by objectives that focused on: branch banking networks, management procedures, marketing strategies and technological accessibility. The study was inclined to social marketing theory propounded by Hendrika Meischke (1993), guided by a self-conceptualized conceptual framework. Descriptive survey research design with both qualitative and quantitative techniques was used as a blue print to guide the study. The target population of the study comprised of 1512 customers of Standard Chartered Bank in Kericho branch. The sample size of the study consisted of 333 customers drawn from Standard Chartered Bank- Kericho branch based on Glenn 1992 pre- determined table for sample size selection at 5% precision. The study employed the use of a structured interview guide with both open and closed ended questions administered through telephone interviews as an instrument for data collection. The validity of the instrument was determined through expert judgement by candidates’ supervisors. Reliability of the instrument was ascertained through pilot testing the instrument on 10% of the sample size using half-split – technique which required only one testing session. Quantitative data was analysed using descriptive statistics in the form of frequencies, percentage counts, mean, mode and medium with the aid of SPSS (Statistical Package for Social Scientists). Qualitative data was transcribed, organized into various emerging themes according to the objectives of the study and reported in a narrative way. The following conclusions were drawn from the study: branch banking networks influenced the performance of current account products, current account holders appreciated product management services, account management services, customer relationship management services, query resolution and transaction notification services offered by the bank as management procedures, Standard Chartered Bank adopted market segmentation, direct sales and advertisement as marketing strategies on its current accounts products, mobile banking services had made banking accessible at home and away from the bank, internet banking (online banking) had eliminated the brick and mortar banking challenges. Finally, results of the study revealed that technological accessibility influenced the performance of Standard Chartered Bank current account products. Based on the findings of the study, the following recommendations were made: Standard Chartered bank to increase the number of ATMs across the country so as to meet the demands of the swelling number of customers, improve on management procedures so as to increase the number of customers utilizing current account products and new relationships, enhance the use of market segmentation, direct personal sales and advertisement marketing strategies to market their current accounts products. Finally, Standard Chartered Bank to conduct a multi-prolonged awareness creation campaigns on the varieties of modern technologies they offer to enable customers appreciate their utilities.