Financial Factors Influencing Diversification Strategy in Banking Industry in Kenya (A Case of I & M Bank Nyali Branch)

Abstract

This study sought to identify the factors affecting diversification strategy in banking industry in Kenya. This is a descriptive survey of Investment and Mortgages Bank Nyali branch. The populations of this study are the corporate clientele, who have been operating accounts at the branch for at least five years. From these clients, a population of 200 will be selected randomly. The general objective will be financial factors influencing diversification strategy in the banking industry in Kenya a case of I & M bank Nyali branch. The specific objectives are : to determine effects of capital adequacy in banking industry diversification strategies; to determine the effects of ICT in bank diversification strategy; to determine the role of human capital and expertise in banking industry diversification strategies and to determine the role of core competencies. Ansoff matrix model is used to explain how diversification strategy will be examined. The conceptual framework will relate with a diagram how dependent variable is related to the independent variable. The sample size will be 132 customers and staff of I & M bank Nyali branch. The research will be conducted using descriptive research design to explain the variables that influences diversification strategy in the Banking Industry. Stratified sampling was used to select relevant respondents from various departments of the organization. Data was processed using SPSS version 22 and information generated presented in forms of graphs, charts and tables. From the study 75.75% responded to the questionnaires administered. The validity test OD Cronbach alpha had 0.7.