Thesis:

Digital banking strategy influence on growth of Sidian Bank limited in Kenya

Technology has become a key component of our lives today. Financial industry is one of the sectors that has adopted technology in a robust manner with most transactions being done through technological channels. However, the banks are still slow to adopt the fast-changing market. Some are yet to align their practices and services towards the digital end and if not fast enough, they might find themselves been pushed out of the market due to unsustainable business practices. In this regard, adoption of technology is a key growth driver. This study examined the influence of digital banking on Sidian Bank Limited’s growth, particularly assessing the impact of digital banking adoption in growth of Sidian Bank Limited in Kenya, investigating the effectiveness of digital marketing strategies in promoting digital banking services and their contribution to the growth of Sidian bank limited in Kenya, and assessing how long-term maintenance cost of Sidian Bank’s digital banking platforms affect the bank’s revenue growth. Study hypotheses were formulated in line with the objectives and relevant literature was reviewed to focus on the study variables. The researcher adopted a descriptive research design to describe how digital banking elements contribute to the growth of Sidian bank Limited, Kenya, with bias on revenue growth. A census approach was used to engage all branch managers, operations managers, relationship managers, and digital banking personnel across Sidian Bank branches in Kenya. Data was collected through structured questionnaires and analyzed using descriptive and inferential statistics, including correlation and linear regression. Correlation analysis was used establish the strength and direction of the association between the variables while simple linear regression was used to measure the cause and effect association between them. The study was anchored on the Theory of the Firm, which posts that the way firms organize their activities in directly related to costs involved, and thus they exist to maximize profits. The findings indicated strong correlations between digital banking (mobile banking, online banking, card business) adoption, marketing of digital services, and operating and maintenance cost of digital banking platforms (independent variables) and revenue growth (dependent variables), suggesting that increased investment in these areas can drive significant revenue growth. In light of these findings, the researcher recommends aligning of strategies and digital transformation initiatives with Digital Economy Blueprint and other national digital finance policies to ensure competitiveness as well as prioritizing targeted digital marketing to accelerate digital adoption. Reports by the World Bank and Central Bank of Kenya on digital financial services provide a robust foundation for guiding Sidian Bank Limited and other financial institutions towards sustainable digital growth. Future researchers can explore longitudinal effects of digital adoption across multiple banks or assess effects emerging technologies like artificial intelligence (AI) and blockchain on digital banking and how they influence customer experience.