Nairobi, Kenya, 11th Dec 2014 – Family Bank’s expansion push – riding on the emerging business opportunities in the counties – has gone a notch higher with the opening of two branches – the 79th & 80th outlets in both Mwea and Litein.
The newest branches opened doors to customers this week just two months after the bank opened its 77th & 78th branches in Malindi and Ukunda in September. Last July the lender opened Bomet and City Hall Annex. Other branches opened this year include Kajiado, Laptrust and Kasarani. The bank relocated its Dagoretti branch to a new site along Ngong Road.
The bank is racing to grow shareholders’ value and get into the top tier space by 2016.
The fast-growing lender has lined up at least 10 new branches with a target of 100 branches by close of 2015 driven by increased business in the counties. The devolution path and emerging opportunities remain a key driver to the bank’s growth strategy.
Managing Director & CEO- Mr. Peter Munyiri says the expansion is guided by the county banking roadmap aimed at optimizing the devolved governance structure. He says the bank was strategically expanding into business blocks in which it did not have a presence including counties.
“We are keen to expand outreach by growing the service channels in strategic areas with focus. We are keen to expand our footprint and hit the 100 branch mark by close of 2015 – to reach and serve more customers’’.
The bank has also revamped its internet banking platform with complimentary online banking options for corporates and SME customers. The value proposition is premised on key functionalities that were lacking in the old platform; key among them:
- Widgets that allow users to personalize their online profiles & dashboards
- And the use of tokens to authorize funds transfer transactions.
The new platform will soon have a mobile app for both Android and IPhone that will boost new user experience.
Customers will be able to do real-time account and transaction reporting to enable users check their account balances; check and download account, fixed deposit and / or loan statements; transfers between own account and transfers to other Family Bank accounts among others.
The expansion and revamping of internet banking platform is pushed by the lender’s desire to play in the top tier in the next 3 years. The move is buoyed by the continued good performance by the bank.
Last year the lender outperformed the industry recording an impressive 108% growth in pre-tax profit.
The lender has been on a growth trajectory hitherto recorded since conversion to a bank seven years ago.
The bank is seeking to raise Ksh 3.5Billion in new capital to fund its expansion, enhance ICT infrastructure and meet new prudential guidelines on capital under which CBK requires banks to increase their capital ratios to 14.5 per cent by January 2015.
“We are pegging our branch expansion plans on the opportunities in all the sectors in the country’’, says Mr. Munyiri.
He adds:” We are also leveraging our strengths and efficiency in our operating model by looking to opportunities of expansion to reach out to the unbanked populations.”
‘’We are leveraging on our banking model which aims at gradually positioning the bank as a one stop-shop providing retail and consumer products, SME, agribusiness, corporate banking and Trade Finance, Insurance products. We are proud that we are a leading SME bank”