Strategic Positioning and Performance of migrants’ Remittance Services in Kenyan Commercial Banks

Abstract

Given the intense local and international competition brought about by shifts in global business, commercial banks have adopted policies like strategic positioning to enhance their competitiveness.  This study looked at the effect of strategic positioning on the performance of immigrants’ transmittals to banks in Kenya. The Generic Framework Theory used emphasises market segmentation and targeting specific consumer preferences. An explanatory research design was adopted, and both primary and secondary data were collected from banks' reports and websites. Cronbach’s alpha coefficient of 0.795 confirmed instrument consistency. The target population comprised 126 managers from 39 commercial banks headquartered in Nairobi, Kenya. Through the Krejcie and Morgan sampling table, a sample of 95 managers was selected. A pilot study involved 10% of the population, which was excluded from the final study. Data were analysed using SPSS version 25.   The regression model applied was P = β0 + β1X1 + ε, where P represented the performance of immigrants’ transmittals, and X1 represented strategic market positioning. Findings revealed an R² value of 0.638, indicating a strong relationship between strategic positioning and performance. Market Penetration Index was 4.04, Market Development Index 4.19, and Brand Communication Index 4.11, producing an overall strategic positioning index of 4.12. All strategic dimensions positively influenced performance, with market development emerging as the strongest factor.  The study revealed that banks should develop strategies like strategic positioning to attract potential clients in differentiated markets. The strategic positioning was found to be a vital factor in boosting the influx of immigrants’ transmittals into local commercial banks for positive performance.