INVESTMENT DIVERSIFICATION AND PERFORMANCE OF NON-BANK FINANCIAL INSTITUTIONS IN NYAMIRA COUNTY, KENYA
Abstract
The purpose of this study was to establish the effects of investment on the performance of non-bank financial institutions in Nyamira County. The study aimed to establish the effects of investment (Capital Investment , Technology Investment, Marketing Investment and Human Capital Investment) on the performance of non-bank financial institutions in Nyamira County.The study was guided by Capital Structure Theory, Innovation-Diffusion Theory, Marketing Mix Theory and Human Capital Theory. The study used explanatory survey design for data collection, analysis and reporting of findings. The target population of the study was the non-banking financial institutions in Nyamira County. Data collection was done through structured questionnaires. The data collected was analyzed using descriptive statistics. The study concluded that; Capital investment boosts non-bank financial institutions' performance by enhancing their capacity for growth, innovation, and competitiveness, technology investment enhances non-bank financial institutions' performance by improving efficiency, customer service, and data management, marketing investment amplifies non-bank financial institutions' performance by attracting more customers and increasing brand visibility, human capital investment strengthens non-bank financial institutions' performance by enhancing employee skills, motivation, and productivity. The study recommends that one, Non-bank financial institutions should focus on capital investment initiatives so as to enhance their performance. Secondly, Non-bank financial institutions should effectively implement technology aspects such as digital Channels and Services, Data Analytics and AI so as to enhance their performance. Thirdly, Non-bank financial institutions should effectively implement marketing aspects such as Customer Acquisition Cost so as to attract and retain high capital base that can enhance their performance. Lastly, Non-bank financial institutions should adopt effective human capital investment in recruitment and promotion.
Key words: Non-Bank Financial Institutions, Capital Investment, Technology, Marketing, Human Capital
CITATION: Lecha, E. W., & Miroga, J. (2024). Investment diversification and performance of non-bank financial institutions in Nyamira County, Kenya. The Strategic Journal of Business & Change Management, 11 (4), 530 – 541. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3103
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i4.3103
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