CBK urges banks to adopt innovative technology

July 4, 2013
CBK Governor Prof Njuguna Ndung'u. Photo/ FILE
CBK Governor Prof Njuguna Ndung’u. Photo/ FILE

, NAIROBI, Kenya, Jul 4 – The Central Bank of Kenya (CBK) is urging all financial institutions to embrace innovative automation to boost formal financial inclusion in the country.

CBK Governor Njuguna Ndung’u says the government will fully support banks keen on coming up more innovations to boost their performance.
He said that automation in banks is no longer a matter of choice and wants all banks to embrace it.

“Automation has enabled banks to provide convenience and efficiently to their customers which has contributed to the increase in the number of bank deposit accounts from 6.9 million in 2007 to more than 17.3 million currently,” he said.

He urged banks to come up with more innovations that are efficient, effective, convenient and cost-saving which will increase the level of formal financial inclusion.

“The various innovations that banks have rolled out recently are the main contributors to the increasing level of formal financial inclusion,” he revealed.

“Automation has enabled banks to provide convenience and efficiently to their customers,” he stated.

He also wants banks to fast track the migration of automation technology to EMV chip technology in order to reduce the ATM fraud in the country.
Ndung’u was speaking during the launch of a solar powered low cost weather proof Automated Teller Machines in Kenya by a USbased company – Diebold.

Diebold launched on Thursday in Nairobi -Diebold 429 multifunction lobby ATM Machine designed for rural and urban self service banking.

Diebold Eastern Africa sales Manager Jude Obitre told Capital FM Business that the machines will create convenience and attract more clients in the banking sector.

“The ATM also has an in built biometric technology to enhance security and cub card fraud, with an integrated four hour battery backup,” he said.

He revealed that Kenyan based Tracom Services will regionally distribute Diebold’s ATMs and banking solutions in the region.

On his part, Diebold Managing Director for Africa Malek Ferdi said the Kenyan market is set to grow from 51 ATMs per million people to 81 ATMs per million people. Currently, there are 5,000 ATMs in Kenya.

“The market is also set to see increased demand as the deadline to have EMV chips in ATM cards approaches at the end of 2013, this will see banks replacing old ATMs,” he said.

Among Tracom’s clients are Equity Bank, National Bank, CBA, City Bank, Consolidated Bank and Banque Populaire du – Rwanda.


Latest Articles

Stock Market

Most Viewed