Effect of Financial Innovations and Operationalization on Market Size in Commercial Banks: A Case Study of Equity Bank, Eldoret Branch
Robert Silikhe Simiyu, Paul Nyatha Ndiang'ui, Celestine Chege Ngugi

Abstract
The study aimed at establishing the effect of financial innovations and operationalization on market size while focusing on Equity, a commercial bank. Further, the study was guided by the following research questions: a.)To what extent has Equity Bank Engineered Financial Products? b.)To what level has the market size been attained in relation to the Current Financial Innovations Undertaken? c.)And what are the pre –existing customers’ needs that need to be met, those that will influence the Current and Future Financial Innovations? The study adopted a Case design approach and used both questionnaires and interview schedules in data collection. The study targeted a population of 1600 people who comprised Equity Bank Staff and Customers who formed its primary sample group. A sample of 200 respondents was drawn from the target population. The collected data was coded, entered and analyzed using the STRATA program; the analysis of the result was based on descriptive statistics (mean, standard deviations, frequencies and percentages). Interview schedules were analyzed thematically using content analysis. Frequency distribution tables and percentages were generated. On tabulation of the data, the researcher interpreted the unique trends that assisted to evaluate whether the objectives of the study have been met. Regression models were used to show relationships between the variables. The key finding was that a significant relationship between the various types of accounts and the assets growth of the bank (p=0.006) and on the profitability of the bank (p = 0.007). The study findings also indicated that there was an effect on the loans issued by the bank on the assets (p = 0.007) and on the profitability of the bank (p = 0.002). Finally, the Correlation indicated no significant relationship between the transaction channels employed and market size (p = 0.011) but a significant relationship between the various market needs and products developed. Thus more innovations were recommended to meet the customer need and expand the market size.

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