project management in marketing

PROJECT MANAGEMENT IN MARKETING MEMBERSHIP NUMBER: 13335982

REPORT ON PATAPESA DIGITAL SYSTEM PROPOSAL

UNIVERSAL BANK OF KENYA

PROJECT MANAGEMENT IN MARKETING

Membership Number: - 13335982

Word count: Report- 6616

Company background: 2 pages

Project Audit: 5 pages


……………………………………………………………………………………………………………………………………………………………

TABLE OF CONTENTS

………………………………………………………………………………………………………………………………………………………………………………………………………

EXECUTIVE SUMMARY....................................................................................................................................................... 3

TERMS OF REFERENCE ....................................................................................................................................................... 4

ABBREVIATIONS................................................................................................................................................................. 6

1. BUSINESS CASE .......................................................................................................................................................... 7

1.1. Project definition statement ............................................................................................................................. 7

1.2. Summary on business need ............................................................................................................................... 7

1.3. Business analysis ............................................................................................................................................... 7

1.3.1 UBK’S Business Objectives ......................................................................................................................... 7

1.3.2 UBK’S Current Competitive Position ......................................................................................................... 8

1.3.3. UBK’S Marketing Objectives/Goals ........................................................................................................... 8

2. PROJECT DESCRIPTION .............................................................................................................................................. 8

2.1 Project business objectives ............................................................................................................................... 9

2.2 Impact on UBK’s business activities ................................................................................................................ 10

2.3. Resource requirements and cost estimates .................................................................................................... 12

2.3.1. Estimates of resources required ............................................................................................................. 12

2.3.2. Cost and benefits ..................................................................................................................................... 13

Project Costs ............................................................................................................................................................ 13

Project Benefits ....................................................................................................................................................... 14

2.3.3. Cost/benefit analysis table ...................................................................................................................... 18

3. RISK ASSESSMENT & PROGRESS MONITORING ...................................................................................................... 20

4. PROJECT SCHEDULE ................................................................................................................................................. 21

APPENDIX A: Company Background ................................................................................................................................ 23

UBK’s history, vision and core values .......................................................................................................................... 23

Industry performance vs. UBK performance ............................................................................................................... 23

UBK’s Customer base and market position ................................................................................................................. 23

Product range .............................................................................................................................................................. 23

APPENDIX B: PROJECT AUDIT .......................................................................................................................................... 25

Demand analysis: Audiences: different needs, wants and desires of different audiences ........................................ 25

The digital marketing proposition for the organization; PATAPESA DIGITAL ACCOUNT ............................................ 25

Objectives for digital marketing activities ................................................................................................................... 26

Project resource requirements (internal and external) .............................................................................................. 26

External requirements ............................................................................................................................................. 26

Internal requirements ............................................................................................................................................. 27


Cost/Benefit analysis ................................................................................................................................................... 27

Strength and risks ........................................................................................................................................................ 28

UBK’s State .................................................................................................................................................................. 29

APPENDIX C: Tables and Diagrams .................................................................................................................................. 30

APPENDIX D: QUESTIONNAIRES ...................................................................................................................................... 31

APPENDIX E: REFERENCES ............................................................................................................................................... 34


.............................................................................................................................................................

EXECUTIVE SUMMARY

.............................................................................................................................................................

David C. Edelman (2010) states;

“Companies that understand the digital technology evolution are now carefully moving digital interactivity toward the

center of their marketing strategies, rethinking their priorities and budgets, and substantially reshaping their processes and

skills. “

The digital era is inevitable to our generation. Companies are no exception as they need to adapt to the changes in the

world market. In Kenya, the situation is no different, what with the advent of fiber optic connectivity in the larger East

African market. The digital era offers a myriad of opportunities to companies.

In this paper, I evaluate the Kenyan market and its need as relates to digital marketing and technology. There has been a

growing usage in mobile phones in Kenya. A Finaccess survey (2007) indicates that approximately 69% of the banked

population owns a mobile phone. The unbanked population rely on the mobile phone to carry out financial services using

the M-Pesa platform (a mobile transfer service offered by Safaricom mobile service provider)

This report proposes the use of the mobile phone technology to provide an additional channel to two key segments in

Kenya; the cooperative societies and the rural population, both unbanked and banked. Through collaborating with the

already established mobile infrastructure of M-pesa, Universal bank of Kenya (UBK) will reach their core market base, the

cooperatives as well as the neglected rural population with speed, convenience, affordability and accuracy.

Other than the objective of increasing profitability, UBK will save on operational and set-up costs in its expansion

strategies. The bank aims at growing through expansion and diversification efforts. However, branch networks which is

one of their key expansion activities is high on costs, ever so increasing with increased competition in the Kenyan financial

market. For a bank to boldly face competition, they need to embrace digital marketing and technology which offers more

opportunities than threats. The system would also contribute towards increasing market share, customer deposits and loan

book growth, which also form UBK’s marketing objectives.

The report has covered a background to UBK and the project audit which identifies the need and value proposition digital

marketing and technology. The audit was prepared through questionnaires to different groups, and sourcing information

from secondary sources such as industry reports. The findings of the audit contributed to developing the business case

and consequently the proposed project schedule. Risk assessment and performance monitoring proposals conclude the

report.


.......................................................................................................................................

TERMS OF REFERENCE

………………………………………………………………………………………………………………………………………

Task definition & objectives

The report is directed to Universal bank of Kenya’s executive steering committee which

and development activities. The committee

� Group managing director

� Director, operations division

� Senior Manager, operations division

� Director, corporate and institutional banking division

� Senior manager, corporate and institutional banking division

� Director, retail banking division

� Senior manager, retail banking division

� Director, finance & administration di

� Senior manager, finance & administration division

� Director, cooperatives banking division

� Senior manager, cooperatives banking division

Task execution

The project will involve a series of processes which need to be carried out before the final deliv

paper will take the following approach; leading to the actual project outline. Preparation is to be carried out to ensure the

project meets its target goals with a fit to UBK’s objectives, timescales and resources. Figure

followed in the report;

FIGURE 1: Project steps from project definition to project planning phase

PHASE 1 & 2 CONSITUTE THE PROJECT AUDIT

PHASE 1:project

definition phase

PHASE analysis phase

•develop

•study

•compare

PROJECT MANAGEMENT IN MARKETING MEMBERSHIP NUMBER

......................................................................................................

………………………………………………………………………………………………………………………………………

Universal bank of Kenya’s executive steering committee which

committee is comprised of the following;

& CEO

operations division

Manager, operations division

and institutional banking division

Senior manager, corporate and institutional banking division

banking division

banking division

& administration division

Senior manager, finance & administration division

Director, cooperatives banking division

Senior manager, cooperatives banking division

The project will involve a series of processes which need to be carried out before the final deliv


project meets its target goals with a fit to UBK’s objectives, timescales and resources. Figure

FIGURE 1: Project steps from project definition to project planning phase

PHASE 1 & 2 CONSITUTE THE PROJECT AUDIT PHASE 3 CONSTITUTES THE BUSINESS CASE

PHASE 2:project

analysis phase

develop

study

compare

PHASE 3:project

recommendatiuon

phase

•project proposal document

PHASE 4planning phase

MEMBERSHIP NUMBER: 13335982

............................................................................................................................

…………………………………………………………………………………………………………………………………………………………..

Universal bank of Kenya’s executive steering committee which is in charge of the bank’s growth

The project will involve a series of processes which need to be carried out before the final deliverables are achieved. This


project meets its target goals with a fit to UBK’s objectives, timescales and resources. Figure 1 illustrates the steps to be

PHASE 3 CONSTITUTES THE BUSINESS CASE PHASE 4 IS THE PROJECT SCHEDULE

PHASE 4: project

planning phase

......................

…………………..

is in charge of the bank’s growth

erables are achieved. This


trates the steps to be


Phase 1

This is the project definition phase that issues a statement describing the Patapesa characteristics as a digital marketing

technology and the nature of the project. This phase is outline within the project proposal segment of this paper.

Phase 2

This phase constitutes developing the business need, studying the technical and economic feasibility of the project, and

comparing the project to the organization’s objectives and overall state (either financially or in relation to the existing

organizational structures).

This is a more problem-solving stage, where a suitable option to address the business need is elaborated. The areas that will

be covered in this phase will be the following;

• Business problem analysis-Analysis of the business problem in context with UBK;

• Identification of potential solution;

• Solution’s feasibility analysis-Studies to determine technical and economic feasibility of potential solutions. An

important study is a Cost Benefit Analysis;

Phase 3

The recommendation stage involves to processes namely i) preparation of business case and ii) preparation of project

charter.

Preparation of business case-this is a presentation of the business case indicating why the project is a viable one in relation to the

UBK’s direction and how it will support the delivery of the organization’s set marketing strategies.

The activities to be done in this stage include;

• Project description

• Project approach

• Risk assessment

The project report was to be prepared by 30th august 2010 after which to await approval. The implementation phase will

take 4 months and is projected to be completed by January 2nd 2010.This also acts as the projected activity launch date.


ABBREVIATIONS

Faulu Kenya-a microfinance institution based in Kenya

IMF-International monetary fund

GDP-gross development product

M-pesa-Safaricom’s mobile transfer services

FSD-Financial sector Deepening Kenya

ROSCAs-rotating savings and credit associations

SACCOs-savings and credit cooperative societies

CBK-Central bank of Kenya

MFIs-Micro finance institutions

USSD -Unstructured Supplementary Service Data

SIM- Subscriber Identity Module


1. BUSINESS CASE

1.1. Project definition statement

The universal bank of Kenya needs to reach the cooperative societies and the rural remote population to build

on its customer deposit number, loan book growth; in line with the bank’s marketing objective of expansion and

growth. This can be achieved through a partnership between Safaricom’s M-pesa (leading mobile service

provider in Kenya) and UBK. Two digital accounts, whose services are to be accessed through the user’s mobile

handsets, namely Patapesa individual and Patapesa cooperative will be developed and is expected to address

their financial needs through increased accessibility, convenience and reliability.

1.2. Summary on business need

Kenya’s economy largely depends on agriculture, with over 23% of Kenya’s GDP attributed to agriculture and related

activities. As Kenya’s economy grows, however, some segments are still missing out. Surprisingly, 62% of Kenyans are still

unbanked, even with the massive expansion strategies carried out by most financial institutions in Kenya.

Following amendments in Kenya’s banking act, the Central bank of Kenya was given the mandate to allow and oversee

non-bank activities such as 3rd party agency banking to be carried out by financial institutions. These place significant

implications on Kenyan banks, as most banks have already embraced the changes in different capacities.

Digital technologies, most specifically M-pesa, have come up to address the unbanked population. Safaricom is Kenya’s

leading mobile service provider with a great reputation on innovation and new technology. Mobile banking in itself

provides an extra distribution channel other than traditional systems. It brings about efficiency, speed and accessibility

with cost effectiveness carrying the highest merit. The cost of setting up branches or ATM’s is expensive, whereas

operating costs slow down even market leaders. In comparison to point of sale third party stations, the resources that

would have otherwise been used to set-up an run such activities could be used in other marketing activities aimed at

improving existing products.

Service providers such as Safaricom’s m-pesa and Zain’s Zap have largely contributed to the infrastructure required for a

robust mobile phone banking system. Introduced 3 years ago, M-pesa alone has a well-established network of over 17,000

retail stores all over Kenya. Safaricom has enjoyed a commendable consumer base of 9 million using the m-pesa platform

to carry out daily transactions. With Kenya’s population being slightly less than 40 million, M-pesa is beyond doubt a

successful system. According to a report by Financial sector Deepening Kenya (2009), a mere 19% of Kenya’s population

have access to formal financial services; and that approximately 78% of Kenyans are living in rural areas.

Partnerships with service providers are the most viable business ventures currently, as the urban market has been covered

to a large extent. Financial institutions such as banks should focus on reaching the unbanked, mainly those in rural remote

areas.

1.3. Business analysis

1.3.1 UBK’S Business Objectives

UBK is a player within Kenya’s banking sector which is comprised of 44 commercial banks with UBK placed as 4th among

banks with large asset base. The bank’s mission aimed at offering value-added financial services to their select markets

mainly the cooperative movement in Kenya, through a well-established network of service points and superior customer

service.


At the core of UBK’s corporate objectives is growth in profitability. This is to be achieved though a countrywide presence,

fundamentally focusing on cooperatives as their key customer base.

1.3.2 UBK’S Current Competitive Position

UBK has the following core competencies;

� Strong market acceptance from its main customer base; cooperatives. Cooperatives banking, which falls under the

bank’s wholesale division registered a pre-tax profit of over ksh 3.3 billion, whereas retail banking’s per-tax profit

was just below ksh 2.5 billion.

� Large asset base-the bank’s total assets grew from ksh. 84 billion in 2008 to ksh 111 billion by 2009 year end, a

32% increase.

� Countrywide branch network of over 79 branches and 260 ATM’s across Kenya.

� Sales oriented, experienced staff-The staff number currently stands at 2288.

UBK’s key competitors are Equity bank, Barclays bank of Kenya and Standard Chartered. In pre-tax profits as at 2009,

Kenya Commercial bank is the leader followed by Barclays bank, whereas UBK comes in 3rd.Barclays bank of Kenya

registered the highest pre-tax profit as at 2009. (See appendix Figure 2)

1.3.3. UBK’S Marketing Objectives/Goals

The bank has for three 3 years since 2008 focussed on three key areas; namely growth in access points, growth in customer

deposits and loan book growth. These have been elaborated in Appendix A.

2. PROJECT DESCRIPTION

The project aims at providing a digital alternative channel to two segments, Banked and unbanked individuals in Kenya

and Cooperative societies in Kenya.

The areas of focus will be the rural remote areas, followed by more accessible areas. This is in line with the project’s need

identification, where research found out that a majority of members of cooperative societies lack access to financial

services but own a mobile phone. To address this need, the project suggests two accounts to be made to meet specific

needs of these target segments;

A Patapesa individual account to reach the Excluded group/segment

This population comprises the segment of the population that lacks any form of access to financial services. Also referred

to as the unbanked population, these mainly store their money at their home.

A Patapesa cooperative account to reach the Informal and formal other groups/segments

Will cater for 2 segments, namely the informal(those who use alternative non-formal associations such as Rotating Savings

and Credit associations(ROSCAs) and the formal other(financial services offered by institutions other than banks, such as

Savings and Credit Cooperative societies, SACCOs)

A further analysis on the segment groups is in section 2.4.3.2 & Figure 7


The following diagram describes the segments that will be addressed and the basic links related to the project.

FIGURE 3: The Patapesa system’s relationship with the m-pesa system towards addressing different segment needs

2.1 Project business objectives The following are the targets for the digital marketing project and how they will suit UBK’S marketing activities;

1. Digital marketing objective for Growth in sales -contribute towards increasing the overall growth in customer

deposits by 4% By January 2011

The digital marketing activities are to account for 4% of the year’s 16% growth expectation in customer deposits.

This will come about due to the large contribution the greater access to its core markets, mainly Sacco’s, will have

on customer deposits. The customers will enjoy efficiency and accessibility of financial services facilitated by

Safaricom’s m-pesa and the formal banking structure laid out by UBK.

2. Digital marketing objective for Value addition -increase service access by offering an additional channel to

both UBK’s existing and new customers.

UBK’s marketing objective for growth in its access points is through expanding its network of branches, ATM’s

and other appropriate channels, whereas the bank’s objective for loan book growth by end of 2010, to increase its

loan book growth to 19% from its 2009 net loan of ksh 62.3 billion.(see appendix A)

Following the value addition objective, UBK will employ digital marketing technology to increase its access points

digitally. This brings in an already established network distribution already placed by Safaricom, with the use of a

mobile handset being the tool for accessibility. With the increasing ownership of mobile handsets in Kenya,

especially in the rural remote areas, cooperative members will have a more available option to deposit, withdraw

and carry out other financial services remotely, and through the m-pesa agents across Kenya.

Taking up of loans will also increase as access points increase. The holders of the Patapesa account will be

regularly evaluated and updated on their status for loan acquisition. They will also gain access to loan repayment

services, which will cross over to all the accounts within UBK.

Patapesa

individual

account

Patapesa

Co-op account

Rosca's &

Sacco's

Rural

population

(Banked &

unbanked)

Universal

Bank of Kenya

M-pesa

System


3. Digital marketing objective for cost saving - reduce costs by 30% within the 2009-2010 through establishment

of a robust alternative digital channel.

UBK’s marketing objective for growth in its access points through expanding its network of branches,

ATM’s and other appropriate channels

With a 30% cost reduction through establishing the digital channel, UBK will be able to expand more, as financial

resources will be more available now that the budgeted costs of expansion will be able to ensure a greater reach

than relying on the traditional channels only.

2.2 Impact on UBK’s business activities

All departments within UBK will actively participate in the project right from initial planning, management, set-up and

measuring/control. The following diagram illustrates the core departments in UBK and the impact/contribution

associated with the proposed project. The departments have been listed in order of their expected level of involvement

with the project.

DEPARTMENTS Level of involvement

IMPACT/CONTRIBUTIONS

1 Marketing department high Formulating product goals, marketing intelligence activities, budget proposal preparations, project schedule preparations,

2 Information technology department

high Internal/external system linkage/connections, collaboration with Safaricom on software development, system administration, internal/staff system support, database & network management,

3 Operations department/ Finance department

high Project financing and Funds management, project risk management

4 Sales/business development department & business process department

medium design of user manuals and service charter, user training on new product usage

5 Human resource department

medium Project manpower recruitment and development, structuring compensation, maintaining staff relations

FIGURE 4: Business impact and projected levels of involvement and departmental contributions

The marketing department will have the greatest involvement in the project with market intelligence and

forming/steering objectives taking the centerfold role. Market intelligence was carried out and the following areas were

observed;

� Market needs and their demographics-this focused on establishing the gaps that exist within the Kenyan banking

sector, areas of opportunity and the demographics of banking facility users in Kenya.

� Customer requirements based on new product –what customers expect on the product. This involved structured

questions which sought answers on what type of product they would consider appropriate for them. Elements

such as convenience, speed, accuracy and affordability were the critical areas of discussion.

� Legal conditions regarding the digital marketing product-these involved restrictions that govern digital activities in

Kenya, their requirements and implications to the design/initiation, preparation and development of the digital

marketing project. Amendments done to the country’s finance act was the most notable regulatory change, which

led to CBK being granted mandate to permit banks to utilize 3rd party agents for the provision of financial

services.

� Competitor analysis-3 banks are actively involved in mobile banking in Kenya, namely Equity bank, Kenya

Commercial bank and Family bank. Equity bank has proved more successful especially due to their public

relations efforts and mainstream advertising they have been carrying out as from early this year.


An ongoing market intelligence process needs to be established to ensure that the market needs are met the best way

possible, changes in the legal environment are monitored, and that competitor developments or counteractions are well

projected and addressed.

In liaison with the finance/operations, information technology, business processes and business development

departments, preparing a feasible budget for the project is one of the contributions that fall under the marketing

department.

The marketing department will also participate in providing information on existing planned activities within UBK.This

will assist in preparation of the project schedules keeping in mind what had been planned for the financial year, thus

avoiding a clash of activities. They will also assist in providing information on which teams exist, clearly outlining their

roles and level of flexibility.

The information technology department will largely focus on facilitating a steady connection between UBK’s banking

system and the m-pesa platform. This will mean a sub-team should be formed comprising members from the I.T

department and the Safaricom’s m-pesa technical department. The core activities of the sub-team should focus on the

following;

� Networking (involving both a theoretical and physical approach) the M-pesa platform to the UBK’s core banking

system.

� Providing regular maintenance and servicing of the back-end functions of the project.

� Preparation of regular progress reports addressing the functionality of the system integration.

� Providing efficient support to the bank’s staff in using the system, in liaison with the business processes and

development team.

� Maintain the digital user databases which assist in account monitoring, control and user evaluation activities.

Operations and finance departments will be in charge of allocation of resources for the digital marketing activities and

managing its appropriate usage, all processes should take into consideration the total marketing budget for the company

and the cost benefit element of each digital marketing activity.

Of crucial importance is the risk assessment role the departments have to carry out before, during and after the project

implementation. The risk management department and the internal audit department fall under the finance department.

The former deals with carrying out independent risk-related processes whereas the internal audit department is engaged in

independent assessment of risk management procedures of all business units within the bank. The following are the areas

of risk that need to be addressed by the risk management team;

Operational risk-the bank’s 2009 annual report describes an operational risk as;

“The risk of direct or indirect loss arising from a wide variety of causes associated with the company’s

processes,personnel,technology and infrastructure, and from external factors other than credit, market and liquidity risks

such as those arising from legal and regulatory requirements and generally accepted standards of corporate behavior.”

In line with the bank’s definition of operational risk, two objectives were made to manage this risk namely;

� To balance avoidance of financial losses and damage to the company’s reputation with overall cost effectiveness

� To avoid control procedures that restricts initiative and creativity

These objectives are in favour of the digital marketing initiative as the digital project brings cost effectiveness with its set-

up and implementation.

Product/service risk-through the bank’s business change management department, new services/products are scrutinized so

as to address the needs of its target customers and assess their alignment to the banks corporate strategies. This is done to


ensure that losses in overall earnings, either through reputational or financial fronts, delivery or management activities of

the products/services or meeting of customer expectations are identified measured and monitored in good time and with

efficiency. The Patapesa accounts are new products, with a different path of delivery, and require distinct management

structures and approaches. This risk assessment will assist in achieving the project’s objectives.

Sales/business development department & business process department-The business development department

(BDM) works in close contact with the bank’s business change management department (BCM) which fall under the

operations department. New or existing products are evaluated through the collaboration of the two departments, with

one addressing the change and financial elements (BCM) and the other (BDM) focusing on the groundwork, actual

development and monitoring of the project’s processes.

In this project, two functions will be at the core of their activities;

� Design of user manuals and service charter

� User training on new product/service usage-. The department will contribute towards attending to the following

areas, but not limited to these ;

• Informing customers on the existence of the service

• Informing customers on the functions of the service, and the product characteristics

• Opening the Patapesa individual and cooperative accounts

• Issuing the user manuals and communicating the service charter to the customers

The human resource department will contribute towards planning for and recruiting manpower relevant to the project.

This also includes sourcing for appropriate agency partnerships that best fits the project’s budget, such as any specialist

technology agencies that might be required in setting up the system’s infrastructure. Appropriate compensation and

relations are also maintained by the human resource team to ensure a smooth flow of the project’s activities.

2.3. Resource requirements and cost estimates

2.3.1. Estimates of resources required

For the project to be successfully implemented, the following resources are required;

1. Financial funding-for government license, buy-out, project team remuneration, operational costs

2. Project team-composed of a cumulative 8 members from marketing-3, information technology-3, operations-2, finance-1,

sales-2, business development and processes-2, human resource-1, Safaricom/m-pesa technological representatives-2,

Safaricom/m-pesa marketing representatives -2, Outsourced engineers to set-up hardware

3. Equipment (software & hardware) requirements-

Patapesa system-

� front end user menu

� back end system hardware linkage between bank’s core banking system and the m-pesa platform(such as satellite

posts to link regional 3rd party agents)

� back end software system linkage between bank’s core banking system and the m-pesa platform


Internal system-

� system linkage between the Patapesa system and the bank’s Customer relationship management system(CRMs)

2.3.2. Cost and benefits

The following are the related costs and benefits that the project is exposed to.

Project Costs

ONE-OFF COSTS

Hardware/software costs

It includes the cost of setting up and maintaining the Patapesa system and the internal system. This also constitutes the

costs for purchasing server computers and routers for running the Patapesa system.

Promotion costs

These will mainly involve below the line marketing; educational campaigns, road shows, sponsorships, public relations and

Mobile messaging. These activities will be carried out during the implementation phase of the project and further.

Facility costs

These will mainly involve expenses incurred in setting up the Patapesa system operations, monitoring and control room

and involve costs such as flooring, lighting and wiring.

ONGOING COSTS

Operating costs

Allocated by the bank’s group risk and group credit bodies, these include expenses that are required for the day to day

running and maintenance of the system. The expenses include the remuneration for the outsourced hardware engineers

required for maintaining the system, including regular upgrading and training of relevant employees related to the Patapesa

system.

Mobile telecommunication service costs

Safaricom requires monthly service costs on using their platform to be paid by the financial institution.

Government licensing costs

The government requires that for any 3rd party agency business to operate, an annual license has to be acquired by the

organization.

Personnel costs

This involves the financial costs required to pay the project team members. These include the project head and the project

team composition members which in total are made up of 18 members. See figure 4 above

Promotion costs

The promotion activities mentioned under the one-off costs will also need to be carried out on an ongoing process for the

project to be sustained and remain profitable. Customer awareness is an ongoing process required for any project to

ensure the product/service remains at the top of the customers mind. Fewer promotional activities will be carried out on


an ongoing process, such as public relations and mobile messaging to

offers.

Supply costs

Variable in nature, these include expenses such as for office stationery.

OTHER COSTS

Cost on risks

So as to complement for operation

whole period of the project.

Project Benefits

TANGIBLES

Growth in customer deposits

Increase in customer deposits is one of the

20% towards the growth in customer deposits target for the

representation of access to financial services in

FIGURE 5: Graphical comparison on access to financial services between the rural and urban populations

1) Excluded- Kenya’s population with no formal, informal or other formal financial services

2) Informal-Kenya’s population using accumulating savings and credit

credit associations (ROSCAs)

3) Formal other-Kenya’s population using

societies (SACCOs) and Micro-finance institutions (MFIs)

22.6%

17.9%

26.8%

32.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Overall financial access


as public relations and mobile messaging to inform users on product changes/improvements or

Variable in nature, these include expenses such as for office stationery.

for operation and service risks, risk costs need to be included which is usually calculated

Increase in customer deposits is one of the key objectives for the project. The Patapesa system is expected to contribute

20% towards the growth in customer deposits target for the organization. The

representation of access to financial services in Kenya in rural and urban areas.

: Graphical comparison on access to financial services between the rural and urban populations

Kenya’s population with no formal, informal or other formal financial services

using accumulating savings and credit associations (ASCAs) and Rotating savings and

Kenya’s population using services from non-bank financial institutions e.g. Savings and credit cooperative

finance institutions (MFIs)

17.6%

41%

17%

21.4%

29.6%16.5%

21.1%35.9%

Rural financial access Urban financial access


inform users on product changes/improvements or

costs need to be included which is usually calculated for the

project. The Patapesa system is expected to contribute

organization. The figure below gives a graphical

rural and urban areas.

: Graphical comparison on access to financial services between the rural and urban populations

Kenya’s population with no formal, informal or other formal financial services

associations (ASCAs) and Rotating savings and

bank financial institutions e.g. Savings and credit cooperative

Urban financial access

Excluded

Informal

Formal other

Formal

inform users on product changes/improvements or

project. The Patapesa system is expected to contribute

bank financial institutions e.g. Savings and credit cooperative


4) Formal-Kenya’s population using commercial banks, Postbank or insurance firms

From figure 7 about 60% of Kenya’s financial population either lack any form of financial service or use informal services.

An extra 18% rely on Sacco’s and MFIs.This leaves the over 44 commercial banks to share the 22% remaining population

base. In the rural areas, about 17% people use other Sacco’s and MFIs, with an additional 50% relying on informal

banking and a large percentage lack any form of banking.in comparison between the urban and rural financial access, a

larger portion of the urban Kenyans use formal banking (41%) compared to the rural population which is past half that of

the urban.

This implies if banks are to increase their customer deposits, which in essence constitute the largest funding for banks,

they have to focus on reaching the rural areas as the urban population already has a big pool of formal banking options.

Efforts geared at expanding its customer deposit numbers should seek channels that reach them, while at the same time

promising functionalities that are even better than those already available in the conventional banking services. The

Finaccess survey (2009) points out that over 26.3% of m-pesa users use the service to mainly save money. The partnership

will therefore contribute towards increased deposits, generally from individuals in the rural areas as well as the ROSCAs

and SACCOs which make up the greater majority of the formal other group. The report on usage of savings products

place ROSCAs percentage at 31%, the highest usage for savings whereas SACCOs enjoy 8.9% usage. This places SACCOs

in fourth position, behind formal banks’ ATM/Debit and with- interest savings accounts. UBK’S focus on ROSCAs,

SACCOs and the unbanked will expose them to a large customer deposit base which constitutes members from the

excluded, informal and formal other groups.

Safaricom’s 23% and increasing market share of the population and over kshs 400 billion in money transfer within the

2009 period, it is a significant pool for UBK to tap into.

Loan book growth

The Patapesa system will have a loan application menu which will enable users to remotely apply for loan qualification.

This will however require an individual/society to have an active balance and transactional activity for over 4 months.

Individuals will set off the loan application process from UBK selected m-pesa agents who will relay document

requirements to the interested users.

The bank’s 2010 objective is to increase its loan book to 19%. This is a high target going by the 2009 15% target. The key

market segment for UBK is the over 11,000 cooperative societies but currently they serve only about 100 societies. This

implies new channels need to be used so as to bring in a good percentage of the remaining 10,000(assuming other banks

have secured the rest), and consequently increase it loan book. The Finaccess survey (2009) reported that SACCO’s

provide about 3% compared to a 2.6 % usage of credit products in Kenya .Significantly, Informal service providers;

especially shops/kiosks constitute the largest credit providers, about 24% of usage. As more of Kenya’s population who

fall under the excluded, informal and formal other groups use the Patapesa system, UBK’s market share will increase

which will contribute towards greater access to loans and finally loan acquisitions.

Accessibility, convenience, speed and affordability will be selling points for the loan facilities offered by Patapesa

individual and coop accounts.

Lower set-up and operational costs

Existence of the well-established M-pesa agent distribution network contributes towards the low set up costs of the digital

channel system. The m-pesa agent distribution network is over 17,000 across Kenya. Actual set-up costs will be mainly

composed of hardware/software purchase and linkage costs.

Operational costs will be minimized to system maintenance and management costs. In comparison to the use of branches,

the Patapesa system will significantly substitute if not eliminate transaction entry staff, which consequently related to

reduced spending on manpower. This is a cost cutting mechanism which has limited negative effects on business

operations.


INTANGIBLES

Increased customer satisfaction levels

The implementation of the Patapesa project will increase access point s to the Kenyan market. The banked, unbanked and

cooperative societies will be able to carry out their financial activity needs with increased accessibility and convenience.

Users will enjoy speed, accuracy, reliability and affordability as product benefits, which greatly constitute what the Kenyan

customers constitute as viable parameters for their satisfaction.

The Patapesa product will be accessed through a user’s mobile phone handset. They will be required to access the service

through a Patapesa menu which will be customized to address the financial needs of the user such as depositing,

withdrawing, interact with UBK’s customer service team, buying airtime as well as other functions. This will provide access

to the very remote of areas in Kenya, areas where formal traditional banking channels fear in investing, considering the set

up and operational costs involved in such channels.

The following are the product value offerings to the Patapesa users;

To the Patapesa individual user

Access of Patapesa menu on their m-pesa menu-users will have an additional menu added on their m-pesa menu, which

users already know how to use for their m-pesa transactions. Through this menu, users will be able to carry out the

following functions;

1. Account activities-carry out money transfer between their M-pesa account to their UBK Patapesa account, loan

application and repayment , request for mini-statements

2. Value-added functions-customer enquiries, loan forex and share information updates, cash-back loyalty program

(on major retail stores in Kenya such as Nakumatt, Tuskys) on deposits made to UBK account.

These menu functions are complemented by the m-pesa agent distributions for access of physical deposit or

withdrawal of money, account opening as well as loan application.

To the Patapesa cooperative user

In addition to the functions provided to the Patapesa individual user, the Patapesa coop user is provided with these extra

benefits;

1. Bulk transfer of money-unlike the Patapesa individual account which has a transfer limit of ksh 40, 000, the p-

coop account will give the cooperative societies a kshs 350,000 transfer limit. This will assist in safekeeping money

that would otherwise be kept in homes.

2. Increased loan amount-depending on the credit scoring which will be evaluated by the bank taking into account

the cooperative society’s transactional and balance history in their p-coop account.

Competitive advantage

Kotler (1997:53; Kotler, 2000) cited in a report by Mahmoud al-Rousan (2009) defines competitive advantage as an

organizational capability to perform in one or many ways that competitors find difficult to imitate now or in the future.

Mahmoud al-Rousan et al in an Eurojournal report (2009) notes however that another view of competitive advantage as

pointed out by other authors is that it is an organizational ability to produce products or offer services different to what

competitors do, by utilizing the strengths that organizations possess so as to add value in a way that competitors find it

difficult to imitate (Pitts & Lei, 1968:68).

In the report, four competitive dimensions are observed, namely cost, quality, time and flexibility.

1. Cost-the cost element can be viewed in two ways, one relating to the set-up and operations cost, the other on usage

costs to the service users.


Johnstone Ole Turana (Business daily, January 11, 2010) points out that a majority of Kenyan banks who have focused on

branch expansion as their growth strategies have been forced to slow down their efforts. This is because of the rising

capital expenditure costs, especially operation costs entailed in branch business. Bank executives further noted that break

even points for new branches have increased significantly; one of them indicating that it moved from 3 months to 6

months, a big impact on a bank’s overall performance. He also notes that the direction some of the banks are taking to

address this situation is through innovation and technology, as reported by standard chartered banks use of information

technology. Manpower increase and capacity building also work against expansion through branch networks.

On usage costs, the mobile banking facility reduces costs that the user is charged for services such as withdrawing. Over

the counter, UBK customers pay ksh 100, whereas the Patapesa system reduces the charges by about 70% to ksh 30.This

comes in addition to the accessibility that the system brings to the users through the expansive m-pesa agent distribution

that already exists. There will be no deposit costs for users, and although the same exists in branches, costs of

transportation to the user might be significant. This includes the physical distance the user has to take coupled with

associated risk of handling sums of money in transit in their pockets for a considerable distance.

2. Quality –the Patapesa system brings in a unique offering to the Kenyan market. Although equity bank and family bank

offer a similar products, the attributes to be offered by the Patapesa system is unique in different ways. The above

mentioned core functions offered to Patapesa individual account holders and the extra benefits that are provided to p-

coop users will be achieved through a simple to use menu. A key characteristic of the rural population is a low level of

technological know-how mainly brought about by poverty and weak access to electricity. The cooperative societies are

widely located both in the urban and rural areas, although the rural numbers are higher. This predisposes them to the state

of the rural population too. Most of the cooperative society members and rural population in general own mobile

handsets. A good percentage also runs on the Safaricom platform which enjoys the highest subscriber base. It is believed a

good number of them use the m-pesa application already, and if not, one of their neighbours uses the system. This makes

it easier for them to operate the Patapesa menu which will be added to their m-pesa menu. In addition, the menu will have

the multi-language functionality which will bring in better functionality to the users, who might prefer, for instance

,Kiswahili; Kenya’s national language.

3. Time- Mahmoud (eurojournal report, 2009) cites Stonebrake &Leong (1994: 53) as follows;

“Organizations can consider the time factor to compete among each other’s. Delivery time can be a

source of competitive advantage when organizations try to reduce the period of time between receiving

and accepting customer orders and provisions of products or services to customers “

Equity bank’s M-Kesho is the only bank offering a menu embedded in the m-pesa menu. Family bank’s pesapap and Kenya

Commercial bank’s Kcb-Connect use the Unstructured Supplementary Service Data (USSD) technology which is significantly

slower than the Subscriber Identity Module (SIM), which is essentially embedded into the phone’s menu thus offering

phone scrolling real-time access.

4. Flexibility- the Patapesa account is structured around digital technologies. A fusion between new digital technology and

the marketing function within organizations brings about one of the strongest leverages to a company facing close-knit

competition, more so within Kenya’s banking sector. A white paper by Experian (Experian ltd, March 2010) on agile

marketing points out that what gives competitive advantage to organizations is the speed of recognizing and responding to

changes in consumer trends and customer behaviour.

The adoption of the Patapesa system provides a digital channel, which gives users an alternative option to banking. What

this relays to them is that UBK is dynamic and innovative, and that they are aware of their customer’s needs. This has a

significant influence on their perception of UBK which in turn build on customer’s loyalty to the bank.


The Patapesa system also bears a unique advantage of customization, as through the product’s open-design, UBK will be

able to add other functions and services using the same platform.it is easier to customize a system to carry out a certain

function than, for instance, setting up a business function within a branch as it requires more staff and capacity

mobilization.

Business continuity

Despite the rising costs incurred in setting up and running branches, they contribute towards bringing in customers and

providing physical points for customer interactions. What Patapesa offers is a form of security, such that when times of

slow performance leading to long break even points in the new branches arise, the Patapesa system brings in a stable

alternative channel which contributes to more than half of customer deposits, which is the main source of funding in the

banking sector, contributing over 79% of total funding liabilities (Central bank of Kenya monthly review, March 2010)

Builds a more reliable database

The linking of the m-pesa system, the bank’s core banking system, the customer relationship management system and the

business logistics information system, the bank will build an elaborate pool of information sourced from the user details of

the Patapesa account users, all the while following privacy requirements. The users will be required to provide some

information which will contribute towards building their credibility status for loan access. Points of depositing of the bulk

amounts will also provide good insight on the user’s demographics.

2.3.3. Cost/benefit analysis table

MAIN CATEGORIES SUBCATEGORIES SUB COSTS ESTIMATE COSTS/BENEFITS

Estimation of major costs

One-off costs 3,640,000

Hardware/software costs

Patapesa system 2,890,000

Internal system

Promotion costs

Educational campaigns 500,000

Public relations

Mobile messages

Facility costs

250,000

Ongoing costs 2,580,000

Operating costs

1,650,000

Mobile telecommunication service costs

130,000

Government licensing costs

60,000

Personnel costs

400,000

Supply costs

40,000

Promotion costs

Educational campaigns 300,000

Road shows

Sponsorships

Public relations

Mobile messages

Other costs 550,000

Cost on risk Operational risks 250,000

Product/service risk

other

TOTAL COSTS 6,770,000

Estimation of major benefits

Tangibles 10,600,000

Growth in customer deposits

6,000,000

Loan book growth

4,500,000

Lower set-up and operational costs 100,000


Intangibles 5,680,000

Increased customer satisfaction levels

Competitive advantage

Business continuity

Builds a more reliable database

TOTAL BENEFITS 16,280,000

FIGURE 6: Table on estimated costs and benefits


3. RISK ASSESSMENT & PROGRESS MONITORING

Key areas of risk assessment will involve financial risks and functional risks.

1. Financial risk-these relate to risks associated with the financial conditions of UBK. The following are the assessments

that cover this risk;

-Cost benefit analysis-these are covered in chapter 2 above.

-Internal financial risk management-these are carried out by UBK’s finance and operations department and focus on

operational risk and product/service risks earlier discussed in section 2.4.2.These will be carried out in the project’s initial

preparation stage and its begin-end dates and parties involved outlined in chapter 4 below.

2. Functional risk-these relate to the risks associated with the actual functioning of the system, what needs to be

established and its effects to different stakeholders of UBK. The following are the key areas of assessing the project’s

functional risk;

-System security assessment-Since the project involves the use of technology, security issues are bound to arise. There

should be a plan to address these security needs. Figure 9 describes the main issues and how best they can be

addressed.

Key system

interfaces

Internal assessment & Monitoring External assessment &

monitoring

1.UBK and M-

pesa

2.M-pesa and

Users

3.UBK and Users

System protection

measures

System Monitoring

measures

Response measures

1. Prepare Patapesa

system security policy

1.Establish real time

hardware, software and

personnel monitoring

system

1.Simulate system breach

scenarios so as to establish

system breach response time

1.Regular assessment of

the Service level

agreement with M-pesa

2.Set up a data encryption

protocols

2.Apply system breach

detection techniques

2.Evaluate and communicate

system developments and

changes to the employees

2.Collaborative effort

with m-pesa to maintain

m-pesa outlet’s liquidity

system

3.Set up authentication

systems

3.Regular audit of the

authentication systems

4.Merge UBK’S security

policy with the Patapesa

system’s security policy

4.Involve 3rd

party security

policy audits

5.Signing of security policy

confidentiality &

acceptance form

5.Random employee tests

on security policies

6.Employee training on

security policies

6.Assess reports prepared

by the bank’s risk

management department

7.Involve the bank’s risk

management department

on regular monitoring and

evaluation

FIGURE 7: Table on proposed risk assessment plan

-Business impact assessment-This has been discussed in section 2.4.2.


4. PROJECT SCHEDULE

The project implementation process will require several management approvals before commencing. The table below

indicates the different management milestones for the project.

Event Estimated date Estimated duration Project plan completed 30th August 31, 2010 4 months Project plan approved 15th September,2010 15 days Project execution-started 20th to 25th September,2010 4 days Project execution 25th September to 28th December,2010 3 months Project execution completed 28th December ,2010 to 2nd January,2011 5 days Project launch 2nd January,2010 to 5th January,2011 3 days FIGURE 8: Management milestones

The actual project implementation project will take 6 stages namely initial preparation, business blueprint, initial execution,

final preparation, final execution and project maintenance. This has been elaborated in the figure 9 below.

Activity Activity specifications Begin date End date

Initial preparation 2010 2010

Setting up project team Assembling the kingdom start team 20th Sep 25th Sep

Internal financial risk management -analysis of the financial risks that the project is subject

-implication of the risks to the project

20th Sep 25th Sep

Resource allocation Procurement and allocation of physical and human

resources to where it is required

26th

sep 28th

sep

documentation Consolidating financial, physical and human costs and

resource requirements into a report.

27th

sep 27th

sep

Technical assessment and

procurement

Assessing the bank’s and M-pesa’s existing technical

infrastructure and procuring any required hardware

and software.

27th

sep 28th

sep

Technical/system set-up Setting up the system link between Mpesa,UBK and

SACCOS

29th

sep 2nd

Oct

Develop user interface program Concurrently with above step, develop the mobile

menu interface relevant to the project.

29th

sep 2nd

Oct

Focus group A meetings Group A composed of members from cooperative

societies and rural representatives from all key

provinces meet.

3rd

Oct 5th

Oct

Running of system test Internally

(head office only)

The digital system is activated internally in the head

office.

5th

Oct 7th

Oct

Stage 1 deliverable System test 1 report to be tabled to the executive

steering team then the top management.

business blueprint

Business processes and business

change department ‘s report on

business impact

---- 8th

Oct 8th

Oct

Project team reviews stage 1’s

internal system test performance

---- 9th

Oct 9th

Oct

Stage 2 deliverable Business impact and change report to be presented to

the executive steering team

10th

Oct 13th

Oct

Initial execution

Initial preparation and

development of user manuals

---- 5th

Oct 14th

Oct

Setting up and developing system

administration activities/roles

planning and allocation of specific duties to be carried

out by the system administrators

15th

Oct 19th

Oct

Further testing of system resources

and requirement

The system requirements are re-evaluated 20th

Oct 31st

Oct

Linking system with Customer To enable logistics & database management 1st

Nov 2nd

Nov

PROJECT MANAGEMENT IN MARKETING MEMBERSHIP NUMBER: 13335982 relationship Management system

and information logistics system

Running of system test

Internally(inter-branch)

---- 3rd

Nov 19th

Nov

Stage 3 deliverable System test 2 report to be tabled to the executive

steering team then the top management

20th

Nov 24th

Nov

Final preparation

Nationwide branch System tests -system failure test

-system back-up test

-system restore test,

-system volume

-stress test

- disaster recovery test

25th

Nov 8th

Dec

Help desk training and support set

up

Training on handling customer queries especially on

usage

3rdth

Nov 8th

Dec

Stage 4 deliverable Pre-execution report to be presented to the top

management for go ahead

Final execution

End user training Involves training real end users i.e. cooperative

societies and general rural population

9th

Dec 14th

Dec

System security tests Further tests on system security 9th

,dec 15th

Dec

Pilot test(focus group A) Final test on Group A after fine-tuning 16th

Dec 20th

Dec

System performance audit System monitoring and support 20th

Dec 23rd

Dec

Pre-rollout promotion activities Educational campaigns

Road shows

Sponsorships

Public relations

Mobile messages

22nd

,dec 27th

Dec

Project rollout Systems fully running countrywide 24th

Dec 28th

Dec

2011

Post-rollout promotion activities Public relations

Mobile messages

Educational campaigns

29th

Dec 12th

Jan

2011 2012011

Project team board meeting Team holds a meeting with executive steering team

and top management

13th

Jan 15th

Jan

Decision on future project team

nature

Discussed by executive steering team 20th

Jan 20th

Jan

Stage 5 deliverable Project assessment report 21st

Jan 26th

Jan

Project maintenance

Regular system maintenance and

upgrading

--- 29th

sep As-need-arises

User feedback from focus group A --- On-going monthly -

Continuous Project development Innovation and market change adaptation On-going monthly -

Stage 6 deliverable Progress report to be presented to top management 30th

jan,2010 2nd

feb,2010

FIGURE 9: Project implementation stages

Progress measuring & monitoring tools

The key project phases


APPENDIX A: Company Background UBK’s history, vision and core values Formed in 1965, Universal Bank of Kenya (UBK) started as a cooperative society and opened business in 1968 with a capital base of ksh 255,000 and a ksh 214,000 government supplement. It became a fully-fledged commercial bank in 1994 and 14 years later became listed on the Nairobi Stock Exchange through a public offer to achieve an 81% share subscription.

Vision is to be the leading and dominant Kenyan bank with a strong countrywide presence, playing a central role in the cooperative movement and providing relevant and innovative financial services to our customers for the optimum benefit of all our stakeholders. Their mission is to offer value-added financial services to our chosen market segments with special emphasis on the cooperative movement through a highly effective network of service points, excellent customer service and a highly motivated team of qualified personnel.

Core values-We are Proud to be the cooperative bank, value our bank’s reputation, employ best practices, value our customers, execute at speed, grow our people

Industry performance vs. UBK performance UBK is a one of the players in Kenya’s banking sector which is comprised of 46 institutions; banking and non-banking, and 15 micro financing institutions, as at 2008. The banking sector in Kenya is stabilizing from the 2007 post-election violence that greatly affected all key sectors in Kenya. Increased Assets and deposits, capital injections and profit retentions have contributed to a significant growth in the profitability within the sector. With the sector facing a fall in inflation from 5.2 % to 4.0 % February –March periods; coupled with a marginal decline of commercial bank’s lending rates to 14.8%, Kenyans are expected to take on more economic activities with confidence. The sector has embraced new technology mainly for improving service delivery.

UBK’s financial performance is largely driven by a capital base boost from the bank’s 2008 IPO, which has contributed towards its extensive expansion goals. In 2009, the bank made a 3.74 billion pre-tax profit, a 11% growth compared to 2008’s 3.4 billion profit. They also increased its total assets by 33% and saw customer deposits increase from 65.8 billion to 91.5 billion, both within the 2008-2009 period.

UBK’s Customer base and market position The bank registered a 71% growth in its customer base to 1.3 million from 700,000 million customers. UBK’s focus has been over the years in cooperative societies. This has driven most of their business activities, most notably through its cooperative movement efforts. Sacco-link and Front office service activities have spearheaded UBK’s core focus which contributed towards the bank serving up to 150 cooperative societies. The bank has also diversified its product portfolio to address different banking needs within the Kenyan market; such as Yea Youth account, Good Home mortgage, and Kingdom securities stock brokerage services as well as embracing technology through m-banking (mobile banking).The bank has 79 service outlets and 9 upcoming branches locally. They plan to venture regionally to Uganda, Tanzania and Southern Sudan.

As at December 2009, Central bank of Kenya’s bank supervision annual report place UBK’s market share at fourth position, with Kenya Commercial Bank, Barclays bank of Kenya and Standard chartered bank leading respectively. This places UBK second local commercial bank in net total assets over ksh 110 billion. UBK holds 9% of Kenya’s customer deposits (ksh 91 billion) with the market leader holding just over 13 %( 138 billion).Barclays Bank of Kenya leads in pre-tax profit with ksh 9 billion compared to UBK’s ksh 3.7 billion, the fourth largest.

Product range UBK offers 4 broad products which are customized to the different banking needs of the Kenyan market. These are divided into divisions.

Co-operatives division-The core customer base of UBK, it offers banking services specialized to Kenya’s cooperative movement who mainly comprise farmers. These constitute a large portion of Kenya’s population as agriculture is the backbone of Kenya’s economy, contributing 23.4% of Kenya’s GDP. Considering that over 63% of Kenyans earn their living either directly or indirectly from cooperative based societies (international monetary fund 2007),it is of great value to focus on the movement. The bank’s efforts to fuse cooperatives financial systems and those of the bank through Front Office Service Activities (FOSA’s) and Saccolink which facilitate over 3000 cooperative societies to bank efficiently and with ease. Among other services, it offers overdraft facilities and Sacco revolving

PROJECT MANAGEMENT IN MARKETING MEMBERSHIP NUMBER: 13335982 Retail banking division-Offers current and deposit accounts such as Yea account (youth market), Salary account, Hekima and Haba na Haba savings account, Goldfish access account (premium deposit account with high returns on deposits).These are backed up by an extensive branch network of 79 outlets and 260 ATM’s all over Kenya. The bank has recently introduced retail products such as GoodHome mortgage facility as well as executive current accounts. Plans are underway to set up POS (point of sale) display units in malls and shops to increase accessibility to financial services for its customers.

Corporate/Institutional banking Division-business current accounts, UBK asset finance, Custodial services to customers such as unit trusts and foreign institutional investors. Letters of credit, bonds and guarantees, insurance financing and bill discounting are some of the specialized services UBK offers to its business clients. Educational institutions such as universities hold educational partnership accounts whereas government banking account compliments the public sector.

Investment division-UBK investment services offers fund management services to both private and public organizations .These services are complimented by their subsidiary stock brokerage division Kingdom securities ltd.

Electronic banking brings in efficiency in service delivery through offering increased accessibility of bank services through mobile banking, with emphasis in M-pesa and UBK service merging which enables on the go transfer of money and utility bill payments. UBK-net is still working on facilitating full internet banking usability to its customers in addition to the current functions of in-house transactions and viewing account details. Through electronic banking, the bank is able to offer a direct debit scheme which is essential in processing regular payments of UBK’s customers.

UBK’S marketing objectives and goals

Growth in access points-

The bank plans to grow its access points through expanding its network of branches, ATM’s and other appropriate

channels, with the branch and ATMs target being 110 and 280 respectively by end of 2011.

Several efforts have been made in line with expansion strategy in UBK. The bank has the following growth avenues;

1. Regional expansion-the bank has partnered with cooperative alliance of Kenya to grow regionally. UBK has made its

presence in Tanzania, Uganda and southern Sudan.

2. Branch network growth- Currently, the bank has 81 branches and 260 ATMs across Kenya and has plans to open 10

other branches and 9 more ATMs before the close of 2010.

Growth in customer deposits-

Last year, the bank targeted 16% growth in customer deposits by year end while for 2010, their target growth in customer

deposits is set as 14%. The bank registered growth in customer deposits, as deposits grew from ksh 65,854 million in 2008

to ksh 91,519 million in 2009.This fell short from the years target, partly due to a slow economic recovery witnessed in

2009.Savings accounts registered the largest growth (210%) whereas current accounts, transaction accounts and fixed

deposits were the biggest contributors to the total customer deposits in 2009 respectively. This objective is supported by

the branch expansion goal as it gives customers more access points to deposit their money.Other facilities contribute to

the growth in customer deposits such as the bank’s partnership with SACCOS to offer the Sacco link facility which

enables cooperative societies to share the ATM network as well as FOSAs, cooperative societies’ Front office services in

UBK branches.

3.3.3.4. Loan book growth-

In 2009, UBK targeted a net loan growth of 15%, from ksh 52.9 billion in 2008 to ksh 61 billion by year end. For 2010,

their targeted growth is to increase its loan book growth to 19% from its 2009 net loan book numbers.

The bank experienced a 17% growth in net loans to customers, from ksh 52.9 billion in 2008 to ksh 62.3 billion in 2009

.Personal banking constituted the largest portion with 43% followed by corporate banking with 28% of the loan portfolio.

Sacco banking was 3rd with a 21% contribution towards the portfolio. The bank’s sectorial analysis points out that the

service sector held the largest portion of the loan book with over ksh 20 billion contribution to the ksh 66,620,704.The

agricultural sector was 2nd contributing approximately ksh 3.9 billion to the total amount.


APPENDIX B: PROJECT AUDIT Demand analysis: Audiences: different needs, wants and desires of different audiences

Cooperatives drive the Kenyan economy in a fundamental way. With over 11,200 registered cooperative societies and over 6 million Kenyans being members, they play a crucial role in sustaining Kenya’s economy. According to an International Monetary Fund 2007 report Over 63% of Kenyans rely either directly or indirectly on cooperative related activities. As at 2009, 32.7% of Kenyans still lack access to basic financial services, having declined from 38.4% in 2006, Central Bank of Kenya reports. This was largely attributed to an increased use of non-bank related institutions such the m-pesa system.

Kenya’s Ministry of information points out that Kenya holds the strongest cooperative movement in all of Africa, with over 50% of the cumulative cooperative annual turn-over in Africa coming from Kenya. Although cooperatives in Kenya cross through all of Kenya’s sectors, the agricultural and financial sectors hold the largest percentage in membership.

Agriculture contributes heavily towards the country’s GDP constituting 23% of the country’s total. This has contributed towards most Cooperatives being mainly agricultural-based, and with most of its members being farmers. Coffee, tea, dairy, pyrethrum and cotton are the main agricultural areas of focus. Coffee societies account for about 658,000 of members in the agricultural societies (Ministry of Co-operative and Marketing provincial report). Agricultural cooperatives constitute approximately 37% of the registered cooperative societies in Kenya.

Within the financial sector, Savings and credit cooperative societies (Sacco’s) pool 45% of the total number of registered cooperatives in Kenya, over 6.2 million users from the total 8 million members. Approximately 18% of Kenyans receive financial services from SACCOS .In line with UBK’S vision enabling access to financial services for its stakeholders, UBK active in its efforts to ensure this is achieved. Over the years, UBK has established integration between its core banking system and SACCOS through Saccolink and Front Office sales activities (FOSAs) which bring financial services closer to the cooperative societies. Through the Sacco link facility, UBK provides wholesale banking to the SACCOS who then offer retail services to its members. This collaboration has seen UBK facilitating over 100 SACCOS from the 11,000 registered cooperative societies. This leaves a greater majority of the cooperative societies operating as stand-alone units or with other banks.

It therefore implies that over 68% of all cooperative societies in Kenya fall under SACCOS and Agricultural based groups. Rural SACCOS constitute a large percentage of SACCOS in Kenya, and are mainly located around areas of large cash crop farms such as coffee and tea. Graham Owen (Agriculture and Rural Development Internal Report) reports over 34% of cooperative are producer cooperatives. Most Cooperatives in Kenya are thus located within Kenya’s rural areas, regions that seem remote to most commercial banks hence the limited attention given to them.

Access to convenient, affordable and reliable financial services remain at the core of financial needs of cooperative members; with access to credit as one of the key services sought after. Surveys carried out in 2002 and 2004 report that about 71% of the credit demands were primarily for farming needs.

UBK’s core business customer base is the cooperative movement right from 1965 when it started as a cooperative society. On ownership, the top shareholder, co-opholdings co-operative society limited has 64.56% share holding. Their focus on cooperatives has driven their 75% growth in customer base and the 3.74 billion pre-tax profits in 2009, consequently contributing to the company’s number 4 position in the country as indicated by central bank’s reports.

The digital marketing proposition for the organization; PATAPESA DIGITAL ACCOUNT

The paper issues a proposal that UBK introduce an account which offers money transfer services using Safaricom’s M-pesa platform.

M-pesa, a mobile money transfer service from Kenya’s leading mobile service provider Safaricom, enjoys over 9 million

customers(40% of Kenya’s adult population) and has an extensive agent network of over 17,000 all over Kenya. This has

been made possible due to collaboration between Kenya’s central depository The Central Bank of Kenya and the

(Communications Commission of Kenya, the country’s communications sector regulator.

PROJECT MANAGEMENT IN MARKETING MEMBERSHIP NUMBER: 13335982 M-pesa has in the recent past been inclined on offering ATM services, more of a one way service where M-pesa was the

key beneficiary. However, several banks such as Equity Bank (M-Kesho), KCB (KCB Connect), and family bank (Pesa

Pap) have engaged the m-pesa service to offer bulk money transfers among others

Paynet, the provider linking banks with m-pesa, has pointed out that the cross transactions from m-pesa to banks are on a

rapidly expanding and large scale rate. A report done by Ignacio Mas et al in 2009 suggest an average of ksh 52 billion in

cash deposits and withdrawal transactions are transacted every month at the m-pesa retail centers. The main use of m-pesa

is receiving money (28%).M-pesa customers use the service fundamentally for sending and receiving money. Speed, safety,

convenience and cost are the strongpoints for the m-pesa service.

The account, to be dubbed Patapesa, will target cooperative societies and generally the unbanked population in Kenya. It will offer financial services to otherwise remote areas as it will only rely on an individual having access to a mobile phone.

A study conducted by Portio projects Kenya’s mobile subscriber numbers to increase exponentially to 21 million by the

end of 2010.The country currently has a subscriber base of 14 million. Mobile handsets have significantly increased in

number as well as become more affordable as Kenya’s 2009 budget removed value added tax (VAT) charge on mobile

handsets. This plays a key role in mobile subscribers’ increasing trends. As the access to mobile phones is favourable, the

bank’s core target customer base, the cooperative movement will have access to a faster, reliable as well as affordable

channel. With mobile phone having risen to 47.5 % and Safaricom’s M-pesa facilitated transfer of over ksh 401 billion,

the partnership will be a catalyst in UBK’s expansion objectives as well as profitability.

Objectives for digital marketing activities

Self-help groups account for over 50% of the channels used in the rural areas for financial related services. These are well located in rural areas across Kenya, and hold huge amounts of money cumulatively. Most commercial banks are skeptical towards investing in such remote areas largely because of the return on investments posed by the demographics. Set-up costs contributed significantly to this (see fig. 2 in appendix c)

Digital marketing communication and technology offers an alternative channel which can be employed by UBK. The objectives of the digital marketing activities will focus on three areas, adopting an approach by Smith and Chaffey (2001) and in context with the prevailing conditions in Kenya and UBK;

Sell (Growth in sales objective)-contribute towards increasing the overall growth in customer deposits by 20% By January 2011

Serve (Value addition objective)-increase service access by offering an additional channel to both UBK’s existing and new customers.

Save (cost saving objective)-reduce costs by 30% within the 2009-2010 through establishment of a robust alternative digital channel.

In February 2009, the Central bank of Kenya was given the role to license as well as supervise Credit Reference Bureaus which would systematize credit information gathered from banking institutions. As credit information is shared, Kenyans will have an increased access to credit as pricing of credit risk will be affected.

Project resource requirements (internal and external)

External requirements

Government licensing/certification- a license from Kenya’s central depository Central bank of Kenya is required before

start of project implementation. Certain clauses in the Finance Act of 2009 sufficiently amended the Banking Act to allow

the appointment of agents by banks. This also includes POS (point of sale).The changes allow the CBK to award

permission and control the very nature of alternative channels taken by banks. Therefore permission from CBK is

required, together with the organization’s intended mode of operation.

Partnership contract with Safaricom’s m-pesa-a partnership contract needs to be agreed upon with a relevant service level

agreement.

PROJECT MANAGEMENT IN MARKETING MEMBERSHIP NUMBER: 13335982 Inter-link infrastructure- so as to connect UBK with m-pesa, services from Paynet would need to be employed, especially

for setting up the connection infrastructure. Paynet Group was used in building the Pesa-pap system (family bank), M-

Kesho (Safaricom) and KCB-Connect (Kenya Commercial Bank) right from its pilot stage to its implementation. Their

services have proven to be successful with little backlogs.

Internal requirements

Accommodative Internal structure-To facilitate the management of the Patapesa account, cross functional teamwork

is essential so as to manage the project’s logistics. Channel managers and officers have to be in place so as to maximize

performance of the marketing project.

Managing director

Head Head Head Head Head Head

(Operations) (Human resource) (Finance) (IT) (Marketing) (Sales/business

development)

Patapesa team

(To manage the proposed Patapesa account)

Figure 10: simplified organizational structure of UBK with a focus on the proposed head

The head of the Patapesa account will be linked with all departments to manage the functions of the m-pesa/UBK

partnership. His overall role will involve;

� Project Planning

� Project Implementing

� Project controlling

The alternative channels division would liaise with UBK’s business process team together with the bank’s information

technology department to come up with a working system that will facilitate the project goals. The business processes

department manages all the bank’s activities, whereas the IT department is in charge of computer based/technological

systems that are in place within UBK.

Collaborative Logistics information management system-the existing system needs to be re-structured so as to

accommodate the new digital account as well as address performance monitoring and evaluation for the project. Through

establishing a robust electronic data interchange system, the organization will be able to collate customer transactions and

data which will enable the organization to establish regional demographics and customer patterns, which in turn will

provide relevant data for marketing intelligence purposes. Through such a system, UBK will be able, for example, to carry

out evaluation for qualification for loans to its UBK customers. The logistics information management system would be

linked with UBK’S Customer Relationship Management system (CRM system).

Cost/Benefit analysis

Digital marketing offers many opportunities to organizations. Digital marketing can be viewed in two perspectives, as a

tool for direct marketing and as an alternative channel; roles which overlap each other. Each of the perspectives

contributes to potential costs and benefits that would arise from the digital marketing project.

PROJECT MANAGEMENT IN MARKETING MEMBERSHIP NUMBER: 13335982 1.1. Cost-cutting

One of the key advantages that this project brings is of a cost-cutting nature. The costs that would otherwise be largely

channeled to marketing activities such as maintaining sales teams would be reduced by the project. This is so because of

the existence of a ready network infrastructure established by leading telecommunications provider Safaricom through it’s

over 17,000 agents all over Kenya. For banks to achieve such an expansive network it would incur huge costs in setting up

and running branches and ATM’s. According to reports carried out by Financial Sector Deepening (FSD January

2010),costs incurred in establishing banks or ATM’s far outweigh options of agency banking such as point of sale

options(POS).The partnership with Safaricom’s m-pesa would subject the project to fall under agency banking, as the m-

pesa agents become alternative channels for the bank’s financial services. Research carried out by CGAP group on

branchless banking as cited by the business daily, suggest that traditional transactions done though banks cost about $2.50,

and that through mobile phone banking it would drop to an average of $ 0.50.This will give financial institutions extra

savings that could be used to focus on growth in other areas. (See appendix C figure 2)

1.2. Greater market access

According to FSD, a mere 19% of Kenyans have access to a formal, regulated financial institution. More than 38% indicated to having zero access to any form of informal financial service. Safaricom is used by 23% of Kenya’s population with 9 million registered customers. With an agent base of over 17,000 well located all over the Kenyan expanse, UBK will get a larger access to the Kenyan market, especially the more than 62% unbanked population .This group is mainly within the Kenyan rural areas with remote access to basic facilities such as electricity and road infrastructure. 3.3 Better service delivery

The digital world has many advantages. The m-pesa model offers an alternative channel to the Kenyan audience.

Traditional methods of transacting range from hand-delivery to the formal banking system. Digital channels come in to

offer these services and more, with speed, efficiency and accuracy pegged with it. Adrian Njenga (mobile phone banking;

usage experiences in Kenya, 2009) compares m-pesa with alternatives. In his findings elements such as speed, convenience,

safety and cost came out strongly in favour of the m-pesa system, bringing the satisfaction level to about 98%.Speed and

safety ranked highest with 98% of respondents preferring m-pesa service to alternatives. The implication of such a

partnership will result to the benefits being experienced by UBK’s customers. Instead of long queuing in the bank’s

branches, customers will have a fast, safe and affordable way to carry out their banking activities .Customer satisfaction

consequently leads to loyalty, and they tend to tell others of the service. This will contribute towards achieving the

organization’s goals.

1.3. Competition

Following the Central bank of Kenya’s approval for agency banking, competition is imminent within the financial sector.

This is because most Kenyan banks have expansion and growth in customer numbers as one of their business objectives.

The Kenyan economy is on a recovery trend and as such commercial banks are striving to capitalize on this before the

market becomes saturated. Again, while focusing on growth, most banks take an ongoing effort to sustain their customers.

Family bank and Kcb launched their m-pesa connected accounts last year, whilst Equity bank, a major competitor to UBK

also launched their own, known as M-Kesho, which is proving to be a successful partnership. Banks need to package their

product attractively and if possible offer value-added services that would attract the Kenyan market to adopt their product

over another. Equity’s strategy is to massively educate the market, especially those in the rural areas, whereas Family bank

has added an additional market update feature to their m-pesa Family bank menu. UBK is placed fourth in Kenya in terms

of market share; therefore they should develop innovative ideas which would complement the partnership project

effectively.

Strength and risks

Strengths

Cooperation from key stakeholders & favourable legislation (CBK & Development bodies)-Following an amendment to

Kenya’s Finance act, 2009, financial institutions were allowed to contract 3rd parties to carry out business on their behalf.

The government is heavily pushing for economic development across all sectors and demographics. This has led to CBK

PROJECT MANAGEMENT IN MARKETING MEMBERSHIP NUMBER: 13335982 being given authority to permit financial institutions to carry out agency banking with relevant guidelines and conditions to

be observed.

Existence of Safaricom’s existing infrastructure-Safaricom has established a robust infrastructure which enables cash-to-

digital conversion. To support this, Safaricom established a channel management execution strategy which, as Ignacio Mas

(mobile payments go viral; M-pesa in Kenya) reports has the following elements;

� Engaging intermediaries to help manage the individual stores-reducing number of direct contacts

� Ensuring that outlets were sufficiently incentivized to actively promote the service

� Maintain tight control over the customer experience

� Developing several different methods for stores to re-balance their stocks of cash and e-value.

Safaricom has a wide distribution of satellites and network boosters all over Kenya which ensure efficient systems able to

handle the m-pesa system to communicate with the bank’s system to provide real-time access. In addition to the channel

management structure, the m-pesa system is easy to use; therefore the consumer will find it an efficient alternative to

traditional services in Kenya.

Risks

Network delays/system downtimes-as more Kenyans get into the m-pesa system, the system might face a hyperactive

network which might cause downtimes.

Exposure to Fraud-solid consumer protection measures need to be addressed as the digital value nature which is

characteristic to digital technology especially mobile banking exposes consumers to fraudulent activities. The customer’s

privacy has to maintain as much as possible as well. The need for adequate protection measures is elevated by the fact that

the channel is two-tiered, between Safaricom’s m-pesa and the UBK banking system.

Limited float-for the retail stores to continue business there has to be adequate demand within the area to bring in a

floating amount.

UBK’s State

UBK’s core business customer base is the cooperative movement right from 1965 when it started as a cooperative society.

On a shares point of view, the top shareholder, co-opholdings co-operative society limited has 64.56% share holding.

Their focus on cooperatives has driven their 75% growth in customer base and the 3.74 billion pre-tax profits in 2009,

consequently contributing to the company’s number 4 position in the country as indicated by central bank’s reports.

Cooperatives drive the Kenyan economy in a fundamental way. With over 11,200 registered cooperative societies and over

6 million Kenyans being members, they have a role in controlling Kenya’s economy. Over 63% of Kenyans rely either

directly or indirectly on cooperative related activities. As at 2009, 32.7% of Kenyans still lack access to basic financial

services, having declined from 38.4% in 2006, Central Bank of Kenya reports. This was largely attributed to an increased

use of non-bank related institutions such the m-pesa system.

Agriculture plays a crucial role in the country’s GDP constituting 23% of its total. Cooperatives are mainly agricultural in

nature as most of its members are farmers. With mobile phone having risen to 47.5 % and Safaricom’s M-pesa facilitated

transfer of over ksh 401 billion, the partnership will be a crucial step in UBK’s expansion objectives as well as profitability.

If the industry leaders Equity bank is anything to go by, their partnership with Safaricom’s M-pesa brought in 20,000 new

customers in its first week of operation. This is an indication that the partnership is a venture with great potent. UBK has

to develop a robust marketing strategy that will have competitive advantage over other players in the industry.


APPENDIX C: Tables and Diagrams

FIGURE 1: comparison between bank's market share of profitability, customer deposits and total assets (figures from central

bank of Kenya)

Figure 2: average set-up costs for 3 channel alternatives (figures in dollars)

0

total assets percentage

customer deposits percentage

pre-tax profit percentage

$ 2,000

0

20000

40000

60000

80000

100000

120000


Tables and Diagrams

: comparison between bank's market share of profitability, customer deposits and total assets (figures from central

up costs for 3 channel alternatives (figures in dollars)

8.17%

9.1%

7.62%

0 10 20 30 40 50

$ 2,000

$ 20,000

$ 100,000

CHANNEL ALTERNATIVES



up costs for 3 channel alternatives (figures in dollars)

others(38 banks)

Cfc Stanbic Kenya

Equity bank Kenya

Universal bank of Kenya

standard chartered bank

barclays bank of kenya

kenya commercial bank

POS

ATM

BRANCH



APPENDIX D: QUESTIONNAIRES

Questionnaire on digital marketing in UBK

Set 1(directed to the marketing department)

1) What direction is the organization taking for this financial year in relation to marketing?

2) Is there a marketing strategy in place for the financial year? If yes which is it?

3) What are the organization’s competitive advantages over its key competitors?

4) Which departments are in constant interaction with the marketing department?

a) ……………………………………………………………..

b) ………………………………………………………………

c) ………………………………………………………………

d) ………………………………………………………………

e) ………………………………………………………………

5) What is the average budget set aside for marketing activities for the financial year?

6) What are the marketing tools currently used by the organization’s marketing team?

a) ……………………………………………………

b) ……………………………………………………

c) ……………………………………………………

d) …………………………………………………...

e) ……………………………………………………

f) ……………………………………………………

g) ……………………………………………………

7) Which is the most preferred marketing tool used in the industry the organization is in? Why?

(Skip sections 9-14 if answer for 8 is No)

8) Does the organization employ digital marketing as one of their marketing tools? If yes, indicate the media

platforms used and for how long has it been used?

(Email, own website, online advertisements, online customer interface, search engine marketing& optimization, mobile messaging,

podcasts, social networks, blogs, wikis, viral videos, digital technologies)

PROJECT MANAGEMENT IN MARKETING MEMBERSHIP NUMBER: 13335982 a) Media platform 1………………………………………………duration used…………

b) Media platform 2………………………………………………duration used…………

c) Media platform 3………………………………………………duration used…………

d) Media platform 4……………………………………………..duration used………….

e) Media platform 5………………………………………………duration used…………

9) Rate the effectiveness of digital marketing media platforms within your organization.

Below average average above average effective very effective

10) What portion of your marketing budget is being spent on digital marketing?

11) Is there a dedicated team set to prepare for digital marketing activities?(indicate how many if any)

a. Specialty vendors

b. Whole marketing team

c. Dedicated group within the marketing team

d. Other department within the organization

12) Is there a team set to carry out the digital marketing activities?

a. Specialty vendors

b. Whole marketing team

c. Dedicated group within the marketing team

d. Other department within the organization

13) Generally, characterize how digital marketing tactics and platforms are currently being used within your

organization?

a. Campaign-by-campaign basis

b. Fully integrated on regular marketing activities

c. Trial/experimental level

d. Very minimal

14) What impact does the organization project digital marketing will have on their overall profitability for the current

period?

Little impact average impact integral to marketing efforts

15) What are the organization’s major concerns for adopting digital marketing?(tick the ones appropriate)

a) Inability to indicate returns on investments (ROI) on a digital marketing activity

b) Lack of experience with the media platforms for digital marketing

c) Legal/regulatory issues related to digital marketing in Kenya

d) Long procedures for adapting and implementing digital marketing


e) Other(please indicate)

16) Does the organization have future plans for using digital marketing techniques? If yes which are they?

a. ……………………………………………………………………………

b. ……………………………………………………………………………

c. ……………………………………………………………………………

d. …………………………………………………………………………….

Set 2(Business need identification) directed to UBKs management

1. What is the key product(s) taking a center role in this financial year’s marketing activities? Why?

2. What were the traditional marketing techniques used to market the key product(s) in the past financial year?

3. Rating it within the scale of 1-5, was it the best choice of marketing technique?

4. What was the overall budget used to carry out the marketing efforts for the key product(s)?

5. What was the rate of return (ROI) for the marketing project?

6. What was the expected ROI for the marketing project?

Set 3(industry expert questionnaire) directed to opinion leaders in Kenya’s financial industry

1. What are the average costs for different digital marketing and technology platforms in Kenya?

2. Is there a need to adapt a digital marketing approach when conventional marketing approaches seem to work?

3. Any key legal and regulatory concerns in operating digital approaches in Kenya?

4. What are the average timescales for the different digital marketing and technology platforms available and

relevant to Kenya?

5. What is the average number of people required to carry out the training programme in each of the key platforms?

6. Which method of training is effective(tick ones appropriate)

• On-job training

• Group focus training

• Other (please indicate)


APPENDIX E: REFERENCES

1. A guide to marketing agility, Experian March 2010

www.experian.co.uk/assets/...marketing/.../guide-to-marketing-agility.pdf [accessed on 15th May 2010]

2. David C. Edelman, Four ways to get more value from digital marketing, March 2010

http://www.mckinseyquarterly.com/Marketing/Digital_Marketing/Four_ways_to_get_more_value_from_digital_marketi

ng_2556 [accessed on 4th April]

3. Finaccess National Survey (2009) Finaccess

www.fsdkenya.org/finaccess/.../09-06-10_FinAccess_FA09_Report.pdf [accessed on 26th July 2010]

4. Mahmoud al-Rousan (2009) Issues in International Marketing Efforts. Eurojournal report

www.eurojournals.com/ajsr_6_02.pdf [accessed on 11th march 2010]

5. Mahmoud al-Rousan (2009) The Impact of SWOT Analysis on Achieving a Competitive Advantage, Eurojournal report

www.eurojournals.com/ibba_6_08.pdf [accessed on 8th July 2010]

6. Monthly Economic Review, Central bank of Kenya March 2010

http://www.centralbank.go.ke/GovernorsCommentary/GovernorsCommentary.aspx [accessed on 25th April 2010]

7.Ole Turana, J (2010) Rising operating costs hit banks’ expansion drive, Business Daily Africa, January 11

8. Results of a national survey on access to financial services in Kenya, Financial Sector Deepening Kenya 2007

www.fsdkenya.org/.../07_01_18_FinAccess_Results_summary.pdf [accessed on 23 July 2010]

9. Stonebrake &Leong (1994: 53) The relationship of strategy, fit and business performance in an e-commerce setting: An

empirical study

http://www. aisel.aisnet.org/cgi/viewcontent.cgi?article=1456&context=amcis2002 [accessed on 18th April 2010]


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