Family Bank Launches a three month Agency Banking Campaign

Family Bank Launches a three month Agency Banking Campaign

posted on May 4, 2016

Nairobi, Kenya, MARCH 22nd 2016 — Family Bank has rolled-out a three-month Agency Banking Campaign as it seeks to optimize service channels – eyeing a larger share of the nearly Ksh 400 Billion industry transactions conducted under a model that has fast gained acceptance by Kenyans.

The Bank is looking at growing its transaction income base through an expanded agency network through recruitment of more agents – 5000 – with an enhanced offering to its nearly 2 million customers. This is besides optimizing its service channels platform that also include ATMs, Mobile banking, and internet banking, among others.

Agents offer a wide range of services including delivery of account opening application forms to the bank’s branches for processing, card-based and cardless deposits as well as card-based withdrawals.
Agents also offer bill payments, accept debit and credit card applications, balance enquiry, card collection and mini-statement.

Speaking during the official launch of the campaign, Family Bank Managing Director and Chief Executive Officer – Peter Munyiri said the agency model was a cost-effective one for both the agent and the bank with a singular objective of extending financial services far and wide.

“These alternative distribution channels form a crucial plank of our growth strategy. With the appointment of more agents whether at hardware shops, supermarkets, pharmacies, post offices – we will widening our reach, increasing access and convenience to our customers and even reaching out to areas hitherto not benefited from any form of banking services,” he said.

Agency banking was introduced in 2010 sparking fears that the public would shy away from using the outlets to get services due to concerns over security and confidentiality. These fears have been assuaged with more embracing the model which was borrowed from Brazil.

The model allows banks to reach more customers without opening new branches that are expensive to set up, or deploy staff. It is estimated that its costs Sh30 million to set up a new branch which usually takes a year to break even.

He added: “These agents are playing a crucial and complementary role in the ecosystem; supporting our brick and mortar which is the clearest example of the traditional banking but all geared to benefiting customers.”

Family Bank has been in a push to bring services closer to its nearly 2million clients, and enhance its customer service proposition; targeting to open 100 branches by the end of 2016 whilst leveraging the use of its innovative alternative financial access channels that includes agents, Internet and mobile banking using its Pesapap platform.