NAIROBI, Kenya Nov 19- Credit Bank is set to invest Sh100 million in overhauling its core banking system as it expands its business.
Credit Bank Chief Executive Officer Nok Bwonditi said the planned upgrade of its system is expected to facilitate the banks foray into the retail-banking sector as it shifts strategy to serve the mass market
“We launched our strategic business plan recently and one of the key pillars is the adoption of new technologies to aid product innovation and customer service improvement. We see this as the key driver for our business growth plan going forward and the shift in our strategy where the bank has fully embraced retail banking deployment of a state-of the art technology is even more urgent matter,” Mr Bwonditi said.
Mr Bwonditi said that the bank had identified the vendor and would start procurement process soon.
“The new core banking we intend to install will certainly help Credit Bank enhance revenue streams, gain competitive advantage and deliver return on investment by enabling us to bring new products to market very quickly; both savings and loan,” he said.
Credit Bank plans to open 11 new branches in the next three years to enable it compete more effectively and to make its services more accessible to its consumers.
This will effectively take the total branch network to 17 over the next three years.
The opening of the new branched has gained approval from the Bank’s board who have accepted to infuse more capital to help in the expansion process.
“It costs between Sh18 million and Sh22 million to put up a branch so we are talking of a huge capital investment cost which the board is willing support. Through this expansion process we will be able to double our balance sheet and triple our,” he said.
He added that the bank was also considering investing in more ATM outlets and moving into agency banking supported by its branch network, which would be strategically located.
“We will roll out new branches faster, develop and deliver products better and serve our customers in more responsive and convenient ways,” Mr Bwonditi said.