Kenyans to access more essential financial services courtesy of Absa Bank Kenya
Counties
By
Ochieng Oyugi
| Aug 22, 2024
Absa Bank Ruaka agents Sammy Njoroge and James Njoroge guide Absa Bank Kenya MD & CEO Abdi Mohamed through a transaction during the launch of Absa Bank agency banking services expansion drive. [Courtesy]
Kenyans living in towns and remote areas now have a reason to smile as far as access to essential financial services are concerned
This is after Absa Bank Kenya PLC announced plans to expand its reach with over 17,000 agency service outlets across the country in two years.
The first phase of this rollout will see the Bank increase its agency network from the current 600 to over 3000 immediately, with a focus on broadening its presence and enhancing service delivery to the last mile.
The project aims to enhance accessibility to essential financial services for individuals and businesses within their localities, offering both existing and non-customers the convenience of conducting cash deposits, withdrawals, and other transactions through third-party outlets.
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This expansion drive is an important strategic step toward meeting the Bank's long-term growth and financial inclusion goals. It is also consistent with the Bank's new customer-centric brand promise, 'Your Story Matters', and aims to bridge the gap for the underserved communities through a third-party network that includes general shops and convenience stores, among others.
Speaking about this development, Absa Bank Kenya PLC Managing Director and CEO, Abdi Mohamed, emphasized the Bank's commitment to supporting customers' growth stories, innovating, and offering solutions that enable them to meet their daily financial needs while living its purpose of 'Empowering Africa's tomorrow together, one story at a time'.
"As a full-service Bank, we cater to customers from all walks of life - from clients who only interact with us digitally, to those who prefer the reassurance of talking to one of our colleagues in-branch or through a third party, we are a Bank for all seasons. As we embrace the evolving landscape, agency networks are a critical piece of how we serve our customers, and we are keen on it. Our footprint will continue to grow over time, and we are focused on demystifying banking for all," said Mr. Mohamed. Absa Bank Kenya MD and CEO Abdi Mohamed presents a gift to Absa Bank Ruaka agent Sammy Njoroge during the launch of Absa Bank agency banking expansion drive. [Courtesy]
"This distribution model will not only drive efficiency in our business as we empower individuals and businesses to thrive but also contribute to the growth of our economy by facilitating essential financial services in underserved areas", added Mr. Mohamed.
This service expansion is consistent with customers' growing preference for alternative banking channels, which is fuelled by the convenience afforded by the agency model.
According to the Central Bank of Kenya's Annual Report for the financial year 2022/23, as of June 2023, there were 21 commercial banks and three microfinance banks engaged in agency banking, with a total of 85,328 and 936 active agents, respectively, since the establishment of agency model in 2010.
The report also noted a considerable increase in banking transactions through agents, with 1.3 billion transactions compared to 1.1 billion in June 2022. During the same time period, the value of agency banking transactions increased from Kes 9.0 trillion to Kes 10.8 trillion, demonstrating that agency banking services are becoming more widely used in Kenya.