The Role of I and M Bank in fostering International Business in Kenya

Abstract

Conducting international trade requires routine access to external capital. Wellfunctioning financial institutions are thus necessary to support the global exchange of goods and services. Indeed, countries with strong financial institutions have been shown to enjoy a comparative advantage and export relatively more in financially vulnerable sectors. However, weak financial institutions hinder growth and general economic activity. Their consequences for cross-border flows might therefore simply reflect disruptions to overall trade. This study therefore sought to determine the role of I&M Bank in fostering International Business in Kenya by answering the following question: How does the role of the bank in facilitating bank transfers, foreign exchange transaction and trade financing foster international business? The research study used a case study in the investigation as it facilitates probing in depth into a situation with the intent of diagnosing a particular condition and recommending appropriate measures. The target population was drawn I&M while qualitative data will be analyzed through content analysis. The research study established that I&M deals in foreign currency by buying and selling currencies from and selling to their clients. The bank executes its money transfer funds through: SWIFT which operates a global fund transfer network. It also transfers funds through Brisk which transfers funds to beneficiaries located in Kenya, Tanzania and Rwanda and Moneygram and western Union funds Transfer Avenue with branches across the world. The banks offers Letters of credit (LC), import bills for collection, shipping guarantees, import financing, performance bonds. The bank has relatively skilled personnel who facilitates effective delivery of service by identifying their clients financial needs and to meet those needs beyond their expectations, not only within the shortest possible time, but also in the effective and efficient manner. The bank offers to its clients a diversified portfolio of international services, which include commercial services, insurance and investment business that saves them time and money. The bank also has an institutional investment wing that caters for various institutions such as schools, colleges, private firms in numerous sectors of the economy and in addition, not-forprofit organisations such as churches and other non-governmental organizations. The bank offers both retail and corporate products and services and therefore has a comemrcial and corporate segment that focus their attention on satisfying the requirements of the numerous clients and customers that fall into either the commercial or corporate category. The bank has a modest branch network consisting of twenty branches, spread out in teh major counties within the country; it also has subsidiaries in Tanzania, Rwanda and Mauritius, together with a significant interest in Propacto Bank which is located in France. There is need for the bank to increase the number of personnel and offer the effective training so as to enhance customer service delivery to build its international branch network so as to increase to tap into a wider market of international clientele and to create awareness about its international business services that it offers so as to attract potential clients