Kenyan lenders shift back to physical branches
Banks in Kenya are reversing the trend of branch closures, which had been prevalent as lenders shifted to digital platforms. This is as lenders that previously shut several key branches in favour of digital banking are now opening more offices to get closer to consumers.
Last week, Equity Bank opened its second branch at Gikomba market, illustrating this ongoing shift in the banking sector. This new branch is located a short distance from a recently opened Kingdom Bank branch. ABSA Bank, and Stanbic have also recently expanded their branch network with I&M Bank opening 8 new branches to increase its network to 93. The lender plans to open 12 additional branches in drive to reach out to retail customers.
Speaking to chief executive officers of cooperative societies in Mombasa, Co-op Bank Group Managing Director and CEO Gideon Muriuki announced that the bank plans to recruit more customers by opening more physical outlets.
“We have made significant strides in digitizing our operations, allowing us to serve customers efficiently. Despite these technological advancements, we will still fast-track strategies geared towards recruiting more customers by opening new physical outlets,” said Dr. Muriuki.
From 2001 to the end of the 2023 fiscal year, the number of Co-op Bank branches increased from 24 to 195, and customer deposits grew from Sh25 billion to Sh502 billion. During the same period, the bank’s assets increased to Sh715 billion. The lender plans to open an additional 15 branches by the end of the year.
Online platforms
Muriuki also confirmed that substantial investments have been made in cybersecurity, with continuous monitoring of operational systems. He noted that 91 per cent of the bank’s transactions are now conducted on online platforms, enhancing customer service efficiency.
The bank is continuing to implement its transformation agenda to remain competitive in the market. This agenda includes intensive and aggressive exploitation of emerging business opportunities.
Muriuki emphasized that the bank will continue offering consultancy to the cooperative movement. “The bank is ready to help cooperative societies overcome the challenges they face. As of the end of last year, we have helped societies develop 1,595 strategic plans to achieve their goals,” he added.
Muriuki said that the key implementation of the transformation agenda will increase the number of customers who deposit their money with the bank.
Currently, the bank has nine million customers, including 21,000 Kenyans in the diaspora.
