Abstract:
The purpose of the study was to determine the effect of banking strategy and profitability of listed commercial
bank CRDB bank plc. The primary goal was to look the positive and negative relationship between the banking
strategies imposed by the bank and its profitability. The research mainly focused on three channels as bank
strategies; sim banking, internet banking and smartcard banking. This study was guided by the balanced score
card theory. The theory proposed explained the relationship exists between sim banking, internet banking,
smartcard banking and bank’s ROA. This study employed quantitative research approach. Its data was
analyzed using statistical techniques, such as descriptive statistics, inferential statistics, regression analysis
and mathematical modeling. The results were typically presented in tables, charts, and statistical summaries,
making them highly structured and objective. The study population consisted of 180 individuals, from whom
100 respondents were drawn using the (Cochran, 1963) formula (n= N/ (1+N e2)). The study used
questionnaires to collect data that were analyzed using descriptive statistics and regression. The study findings
conclude that smart card banking and internet banking have a positive correlation with bank’s ROA. Regression
results have indicated that a negative association exists between sim banking and ROA. As sim banking
increases, it causes a decrease in ROA. Sim banking and ROA ought to have an inverse relationship. From
the discussions, it has been noted that bank strategies imposed has considerably contributed to the bank ROA
hence the study suggests that; They should put up more enhanced strategies to attract their customers using
sim-banking; They should also try to reduce the amount of fees charged on the transactions on sim banking so
that to attract more customers and to gain more profits; Banks should make sure that the procedure and
process for Internet banking, sim banking and ATM’s is simple which will increase the convenience and
efficiency of these bank channels by customers.
