Digital Transformation Strategies and Organizational Performance of Family Bank Limited, Kenya

Abstract

Digital transformation strategies and organizational performance are intricately linked in modern business environments, particularly in industries that are heavily reliant on technology, such as banking. Digital transformation strategies are designed to enhance efficiency, customer satisfaction, and overall competitiveness transformation has the potential to influence several key aspects of organizational performance, including operational efficiency and customer satisfaction. Family Bank Limited has made significant investments in digital banking solutions. However, there are growing concerns regarding the effectiveness of these digital strategies in enhancing organizational performance. Despite the widespread adoption of mobile banking, internet banking, and digital payment platforms, questions remain about the extent to which these innovations improve operational efficiency and customer satisfaction across the banking industry This study sought to examine the effect of digital transformation strategies on the organizational performance of Family Bank Limited, Kenya. The investigation was a case study and employed the qualitative research design. Qualitative data was gathered using interview guides from heads of different departments at Family Bank. Qualitative data was analyzed using content analysis.  The study found that digital transformation strategies have significantly contributed to performance at Family bank.  The findings revealed that the bank has adopted various digital transformation tools and platforms such as online banking, mobile banking, paperless banking and investment in software for security surveillance among other which has yielded significant cost reductions, faster transaction processing and enhanced service delivery. The findings further revealed that digital transformation has contributed to enhanced customer experience at family bank by enabling the bank to offer seamless and better services at lower fees and meeting various customer touch points. Digital platforms have also been used to showcase various product offering creating a pool of alternatives for customers. Additionally, digital transformation in the bank was driven by factors such as the necessity to conform to change happening in the industry, customer demands and availability of skilled personnel. Nonetheless, the digital transformation journey was confronted by challenges such as heavy investment required to transition to new systems and technologies, resistance to change and data security concerns. The recommendations include the allocation of adequate resources for digital transformation processes, undertaking of adequate market research before adopting new technologies and emulating best practices from well performing banks with respect to digital transformation across the globe.

Keywords: Digital Transformation Strategies, Organizational Performance

DOI: 10.7176/EJBM/17-1-01

Publication date: January 30th 2025