The effect of branding on deposit mobilisation of selected commercial banks in Kumasi

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JULY, 2015
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Branding has become a necessary tool for companies and it has been used by many companies for strategic reasons particularly for the maintenance of the uniqueness of their products and services and this has given these companies a competitive advantage. The banking sector has transformed partly due to the reform and liberalisation in the banking sector through the Financial Sector Adjustment Program (FINSAP) and the proliferation of savings and loans and microfinance institutions who go beyond the orthodox banking system that requires customers to commute to banks personally to make deposits has resulted in keen competition among existing commercial banks which has affected most commercial banks in Ghana to experienced eroding customer deposits. To curb this completion most commercial banks has uniquely branded themselves. This study focuses on the effect of branding on deposit mobilization of selected commercial banks in Kumasi. Researcher adopted a purely quantitative approach of data collection and analysis. In all, a total of 250 participants were selected by means of convenient and simple random sampling methods. The research data were analysed using tables, frequencies, percentages, charts and a regression model. The study found that commercial banks commonly mobilized deposits through savings, current and fixed deposit accounts. Also among the numerous strategies used by commercial banks to mobilize deposits include marketing teams, mobile banking, long term investment, sales and advertisement, mass retail, mentioned deposits without commission of turnover (COT) and institutional deposits. Also company name, trademark/logo, colours, service/product quality, reputation, speed of service, quality of staff/talent, infrastructure and technology are among the tools used by commercial banks to brand themselves. Aside the above, it was found that branding has a very high effect on deposit mobilization. Further analysis revealed that branding had a positive effect on deposit mobilization. It is therefore recommended that directors, managers, marketers and human resource managers should adopt branding strategies that are customer-centred and should always involve employees in the process.
A thesis submitted to the Department of Marketing and Corporate Strategy Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirement for the degree of Master of Business Administration (Marketing Option) July, 2015