Kenya's Biggest Banks Look to Mobile Banking to Drive Profits

Aug 21, 2019 | Capital FM, All Africa

Kenya's most profitable banks are doing one thing in common - they are turning to mobile banking to drive profitability.

Take the instance of Kenya Commercial bank, the country's largest lender by assets; last week, the bank reported that transactions done outside the branch had increased to 96 percent of total transactions, in the last 6 months, up from 87 percent.

Group CEO and Managing Director Joshua Oigara says the transactions were mainly driven by mobile transactions.

The bank registered Sh12.7 billion in profit after tax in 2019 half year result, an upward improvement of 5 per cent from Sh12.1 billion registered during the same period last year.

The company also reported a 131 percent growth in non-branch revenue to over Sh5.2 billion.

As of June 2019, KCB's mobile transactions accounted for 78 percent of transactions, followed by Agency and internet banking at 14 percent.

Bank tellers and Automated Machines (ATMs) tied at 4 percent.

"We had a strong second quarter and witnessed continued growth across our businesses segments. The investment in technology generated positive return and further helped drive efficiency and deepen access to affordable financial services in all markets," Oigara said.

This comes a few weeks after Equity Bank, Kenya's largest retail lender by customers Equity Group said most of its transactions were conducted on mobile, rising to 77.4 percent, compared to 76.4 percent recorded during a similar period a year earlier.

In its half year results early this month, Equity confirmed that most of its transactions were conducted on mobile, rising to 77.4 percent, compared to 76.4 percent recorded during a similar period a year earlier.

Equity Bank's half-year net profit increased nine percent to Sh12 billion... Read more on All Africa

Source: All Africa