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Mobile banking takes over transactions at Equity

The bank’s mobile transactions rose to 77.4 percent, compared to 76.4 percent recorded during a similar period a year earlier/COURTESY

NAIROBI, Kenya, Aug 1 – Most of Equity Group’s transactions were conducted on mobile in the last six months, confirming the extent of digital disruption in Kenya.

The bank’s mobile transactions rose to 77.4 percent, compared to 76.4 percent recorded during a similar period a year earlier.

The bank’s Eazzy app transactions growing by 28 percent to reach 146 million up from 114 million transactions while Equitel transactions grew by 5 percent from 121 million to 126 million transactions.

“We strive to respond to our customers’ emerging needs, aspirations and preferences. As demand for these services evolve in tandem with the changing lifestyles, we are positioning ourselves to create new bridges of opportunity for Kenyans by combining the empowering nature of access to credit with the reach and transparency of technology,” Equity Group Managing Director and CEO James Mwangi said in an earlier interview.

Agency banking was the second most used at 12.2 percent and conducted 44 million transactions.

This was followed by automated teller machines (ATMs) at 3.7 percent. Branches came last at 3.4 percent.

Additionally, 93 percent of loans disbursed during the period were mobile loans.

According to the bank, out of the 2 million loans disbursed, 1.9 million loans worth Sh70.9 billion were disbursed through Equitel mobile channel.

Only 100,000 loans worth Sh20 billion were disbursed through the branch.

The figures were revealed during the company’s half year results where the bank posted Sh12 billion in profit after tax, marking a 9 percent growth.

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The Group registered an 18 percent growth in total assets to reach Sh638.7 billion up from Sh542.02 billion registered the same period previous year.

Interest earning assets grew by 15 percent to Sh500.5 billion up from Sh433.9 billion driven by a 17 percent growth in net loan book to Sh320.9 billion up from Sh275 billion and a 13 percent growth in government securities to Sh179.6 billion up from Sh158.9 billion.

Mwangi attributed the growth in assets to successful mobilization of deposits; “Our customer centric and ecosystem approach to inter mediation has given us an opportunity to target our customer’s horizontal and vertical value chains.”

“The branch is evolving to an SME advisory center as majority of our customers move to more convenient self-service digital channels,” he added.


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