The Role Of Product Mix On Revenue Performance In Commercial Banks. A Case Study Of Stanbic Bank, Nakasero Branch

ABSTRACT

The study intended to investigate the role of product mix on revenue performance in commercial

banks a case study of Stanbic bank, Nakasero branch being guided by a problem statement that is

to say the task of designing product mixes in commercial banks is increasingly getting more

complex due to the increasing competition of both financial and non financial banks in the

economy the concept seemed to have been taken for granted which forced the researcher to end

up conducting a detailed research in order to examine the role of product mix on revenue

performance in commercial banks a case study of Stanbic bank, Nakasero branch

The main specific objectives of this study were to find out the composition of the product mix in

commercial banks, to examine the performance of revenue in commercial banks and to assess the

link between product mix and revenue performance in commercial banks. In data collection

process, the researcher employed instruments like closed and self administered questionnaires

and interviews for primary data and extensive library research for secondary data which were all

analyzed using Microsoft excel, presented in tables and pie charts for easy interpretation.

In as far as findings are concerned, the study found out the failure by the bank to provide or avail

its products to consumers led to poor revenue performance and were not entirely due to high

interest rate charged on the products but there were other factors which led to an increase and a

decrease in revenue.

Furthermore, other factors which lead to increase or decrease in revenue include entry of non

banking competitors into the banking market, pricing and regulation of products provided and

demographic location, political factors, competition and income levels among others.

Commercial banks are recommended to carry out data mining that is, getting detailed

information about how each customer uses the product which will help identify customers likely

to be other products and services.

Commercial banks should remove some of the products and services that are bringing in low or

no revenue at all so as to remain with products that are much profitable and generate more revenue.