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The lender saw income from interest grow from Sh5.78 billion to Sh7.9 billion as the loan book jumped by Sh3 billion/CFM BUSINESS

Kenya

Family Bank on track to hit 100 branches with three new outlets

The three branches in Wangige, Eastleigh and River Road come at time when banks are scaling down on branches on the back a higher adoption of alternate channels/CFM BUSINESS

The three branches in Wangige, Eastleigh and River Road come at time when banks are scaling down on branches on the back a higher adoption of alternate channels/CFM BUSINESS

NAIROBI, Kenya, Nov 19 – Family Bank is opening three new branches in Nairobi to push its branch network from 93 to 96 in an expansion plan that will see the bank achieve its target of 100 branches in the first quarter of 2017.

The three branches in Wangige, Eastleigh and River Road come at time when banks are scaling down on branches on the back a higher adoption of alternate channels.

But for Family Bank CEO David Thuku, the bank sees an opportunity in pursuing an expansion in both brick and mortar branches, and new channels like agencies, digital and ATMs.

“For Family Bank, we do not have an either or scenario. We might be seen as going against the grain but our market segment requires us to be in the brick and mortar space and that’s why we are opening a few more branches,” says Thuku.

The bank, the CEO says, has fully embraced an alternate channel strategy which may mean deploying human capital differently.

The channels, which include agency banking, online and mobile platforms, has transformed how customers engage with the bank, with almost half of the total transactions going through the channels.

“Customers now, compared to previous times, just need to meet a particular need at their convenience. You don’t need to go to the bank to pay for something,” says Thuku.

A higher and faster uptake of digital channels by customers has spurred banks to adopt digital strategies and allocate substantial resources to maximize customer experience.

The banks that have so far announced their results for this quarter have credited alternate channels, particularly mobile platforms, to substantial new customer and revenue growth.

The second-tier lender is set to declare its Q3 results on Wednesday having declared a profit before tax of Sh1.07 billion.

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