INFLUENCE OF CORE BANKING SYSTEM ON PERFORMANCE OF NATIONAL INDUSTRIAL CREDIT BANK IN KENYA
Abstract
Core Banking Systems are basically the heart of all systems running in a bank and it forms the Core of the bank's IT platform. The general objective of the study was to establish the influence of new Core Banking System on performance of the National Industrial Credit bank in Kenya. The research study was conducted using descriptive research design, targeting all the 1,100 employees of NIC bank in Kenya. The study sampled 10 percent of the target population giving the study a sample size of 110 respondents. Questionnaires were used as the primary research data collection instrument. Data was collected from Managers and Support Staff. The data collected was analyzed using SPSS (V.21). The data gave an R square of 0.790 indicating that predictor variables (customer centered banking, innovation, efficiency and growth orientation) explained 79.0% of the performance of NIC Bank while 21.0% is contributed by factors other than those under investigation in this research. The study result established the presence of a strong significant relationship between the predictor variables (customer centred banking, innovation, efficiency and growth orientation) and dependent variable (performance of NIC Bank). The recommendations were as follows; the bank should review its Customer Relationship Management (CRM) practices in their operational activities to ensure that it is more customer responsive hence boosting the bank’s performance, the bank should conduct customer satisfaction surveys which will provide valuable information on the level of customer satisfaction and how the bank’s products meet customer needs through customer centered banking practices, bank employees should be trained to enhance an appropriate and efficient response to the customer needs in a caring manner and lastly the bank should continuously upgrade and automate its systems to allow the bank to offer superior agency banking, mobile banking and efficient yet cost effective money transfer services compared to its competitors.
Key Words: Performance, Customer Centred Banking, Innovation, Efficiency, Growth orientation
CITATION: Ojijo, A. J., & Obere, E. O. (2019). Influence of core banking system on performance of national industrial credit bank in Kenya. The Strategic Journal of Business & Change Management, 6 (3), 1 – 10.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i3.1292
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