Co-op Bank has 6.1million account-holders./ COURTESY
NAIROBI, Kenya, Nov 18 – Co-operative Bank of Kenya has moved 87 percent of customer transactions from its branches to alternative channels.
The channels, which include mobile and agency banking, has contributed to increased efficiencies and cut costs to see the bank declare a net profit of Sh10.5B in quarter 3.
Dr.Gideon Muriuki, the bank’s CEO, said the sustained performance is attributable to the realisation of gains arising from the bold Transformation Project that the bank has been implementing since 2014.
As a result of the migration, the bank has moved 63 percent of its staff moved from tellers to front-office sales roles, cutting the average queue time from 27 minutes to 9 minutes in one year.
“We are focusing on Driving Volumes, Non-funded income growth, quality Loan Book growth and conversion of leads into sales,” said the bank in a statement.
The bank also revealed mobile loans through its MCoop cash had grown by 130 percent with the number of registered mobile cash customer growing by 20 percent in the year under review.
In addition, Co-op Bank has aggressively pursued a data-driven strategy that has seen enhanced data analytics play a key role in driving sales.
The bank’s total interest expense grew by 15.8 percent from Sh8.6 billion to Sh9.9 billion attributable to increased cost of funding.
