The Role of Product Mix on Revenue Performance in Commercial Banks. A Case Study of Stanbic Bank, Nakasero Branch

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Date
2011-04
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Publisher
Kampala International University, School of Business and Management
Abstract
The study intended to investigate the role of product mix on revenue performance in commercial banks a case study of Stanbic bank, Nakasero branch being guided by a problem statement that is to say the task of designing product mixes in commercial banks is increasingly getting more complex due to the increasing competition of both financial and non financial banks in the economy the concept seemed to have been taken for granted which forced the researcher to end up conducting a detailed research in order to examine the role of product mix on revenue performance in commercial banks a case study of Stanbic bank, Nakasero branch The main specific objectives of this study were to find out the composition of the product mix in commercial banks, to examine the performance of revenue in commercial banks and to assess the link between product mix and revenue performance in commercial banks. In data collection process, the researcher employed instruments like closed and self administered questionnaires and interviews for primary data and extensive library research for secondary data which were all analyzed using Microsoft excel, presented in tables and pie charts for easy interpretation. In as far as findings are concerned, the study found out the failure by the bank to provide or avail its products to consumers led to poor revenue performance and were not entirely due to high interest rate charged on the products but there were other factors which led to an increase and a decrease in revenue. Furthermore, other factors which lead to increase or decrease in revenue include entry of non banking competitors into the banking market, pricing and regulation of products provided and demographic location, political factors, competition and income levels among others. Commercial banks are recommended to carry out data mining that is, getting detailed information about how each customer uses the product which will help identify customers likely to be other products and services. Commercial banks should remove some of the products and services that are bringing in low or no revenue at all so as to remain with products that are much profitable and generate more revenue.
Description
A research report submitted to School of Business and Management as a partial fulfilment for the Award of Bachelor's Degree in Business Administration of Kampala International University
Keywords
Revenue, Performance, Commercial Banks
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