Micro-lender Faulu has rolled out massive agency banking across the Country to tap on the merging market across the Country.
Managing Director Apollo Njoroge said that Kenyans have diversified on the banking system for an easier and convenient way.
Agency banking in Kenya has been around for about 7 years f,is going to see a transformation of branch banking as banks roll out more products to alternative delivery channels.
According to the Central Bank of Kenya statistics on the distribution of agents, 87% are with 3 banks – Equity Bank with 25,428 agents, Kenya Commercial Bank with 12,883 and Cooperative Bank with 8,856 agents.
Bank customers in Kenya transacted Kshs 734 billion in 2016, up from 442 billion in 2015).
Speaking in Murang’a town yesterday during the launch, Mr Njoroge said the microfinance lender so far has over 400 agents across the country.
“Our intention is to align ourselves to the devolution agenda that ensures services reach the community at the grassroots. Agency banking, among other alternative payment solutions, has improved our customers’ banking experience which is key enabler to delivering superior service,” he said.
Faulu said its venture into agency banking was to deepen its reach by offering convenience to its customers regardless of their location.
The micro-lender is targeting to grow the number of its agents to at least 2,000 as foot traffic to banking halls falls.
Faulu, controlled by South Africa’s Old Mutual Group, saw its net profit for 2018 increase by more than three-quarters to Sh190.44 million.
The lender’s gross loans to customers increased to Sh19.18 billion in 2018 from Sh17.28 billion the previous year, helping grow revenue from fees and commissions by 40.28 percent to Sh621.19 million.
In 2014,Faulu Kenya has raised Sh4 billion partly to fund an expansion drive that will result in the micro-lender doubling its branch network and introduce agency banking.
The deposit-taking microfinance (DTM) institution cobbled up the funding entirely from its shareholders.
“We have raised Sh4 billion but we also have debt partners such as the European Investment Bank, the International Finance Corporation and other international lenders who have been supporting us over the years,” said Faulu MD John Mwara.