Influence of Process Digitization Strategyon Performance of Home-grown Multinational Firms in East Africa: a Case of Equity Bank, Kenya

Abstract

The modern corporate world is defined by competition, globalization, and an uncertain environment, a challenge that has made business organizations to employ different information technology capabilities to cushion themselves against negative effect of these events.. The banking sector is one group of organizations that have had to employ information technology in their operations and considering the large volume of data that they come across in their day-to-day activities. It becomes therefore imperative that the influence of these data systems on performance be evaluated. The objective of the study was to establish the effect of process digitization on performance of Equity bank (k) Ltd. The research was anchored on transaction cost theory and socio-technical system theory. The research design was a case study in which four interviewees based at the bank head office participated in the study. Data was analyzed using content analysis technique. The research investigated three process digitization dimensions, namely; automations related to customers, operations and risk management. The result was that the bank customer-focused digitization processes enhanced its operational efficiency, accessibility, and security while providing a superior customer experience. In relation to operations focused digitization strategies, the findings reveal that the bank has adopted a paperless transactions, automating back-end functions, integrated advanced technologies like AI and cloud computing, and optimized resource management. The result of this is enhanced efficiency, reduce costs and enable the bank to provide seamless services. The bank risk-management digitization process involved centralized risk dashboard platforms, leveraging advanced digital tools and technologies. The strategies were fund to have boosted the bank its overall performance by reducing financial risks, enhancing operational efficiency, and building trust with customers and stakeholders. The findings from the study concludes that the bank digitization process that is centered on customers, operations and risk management had improved its performance by enhanced efficiency, reducing costs and delivering superior services. Due to the bank growth over the last two decades, the study recommended that it prepares for its future growth by investing in infrastructure that supports emerging technologies. The bank should also expand its paperless and energy-efficient processes to align with sustainability goals.