EFFECT OF INNOVATIVE BANK STRATEGIES ON CUSTOMER EXPERIENCE IN COMMERCIAL BANKS IN KISUMU CITY, KENYA
Abstract
Customer experience is a feeling associated with a company’s ability to provide positive experiences to their customers. Services range from one-on-one interactions where a support agent resolves a customer issue, to exchanges with the brand on a more public scale. Poor service appears to be the top reasons as to why bank customers leave their bank. Innovation has enabled banks to differentiate their products and services. Banks find that they have to constantly innovate and update in order to retain their demanding customers, remain competitive and relevant in the market. Commercial banks have migrated to the digital space whereby customers no longer visit banks physically to complete transactions, but rather complete their transactions online, use mobile devices, visit bank agents and ATM points. The current study sought to establish the effect of innovative bank strategies on customer experience of commercial banks in Kisumu City, Kenya. The specific objectives of the study were to establish the effect of agency banking and internet banking on customer experience of commercial banks in Kisumu City, Kenya. The study target population consisted retail banking customers of the seven major banks in Kisumu City, Kenya that were frequent users and non-users of mobile, internet, ATM and agency banking services. The banks included KCB Bank K., Ltd, Cooperative Bank, Equity Bank, ABSA, National Bank, Family Bank and Standard Bank. The sample was stratified by bank and simple random sampling was used to select customers visiting the banks. The study primary data was collected using structured questionnaires. Data analysis was carried out using statistical package for social sciences version 21. The findings of the study revealed that agency banking and internet banking had a positive and significant influence on customer experience in commercial banks in Kisumu City, Kenya. Based on the findings, the study therefore recommended that commercial banks in Kenya should invest in agency banking by empowering their bank agents with basic banking skills, ensuring that their agents adhere to the bank policies and standard security measures, hence safeguarding customers from fraud. These would significantly enhance customer experience.
Key Words: Agency Banking, Internet Banking, Customer Experience and Commercial Banks
CITATION: Obondo, E. A., & Juma, D. (2020). Effect of innovative bank strategies on customer experience in commercial banks in Kisumu City, Kenya. The Strategic Journal of Business & Change Management, 7 (4), 895 –905.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i4.1831
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