KCB Bet on Digital Banking Pays Off with 96 Percent Transactions on Mobile

kcb half year results 2019

The growth of online services continues to see widespread use, particularly in banking. These institutions, especially in the Kenyan market have been instrumental in popularizing mobile banking. Today’s star in this regard is KCB that staged it’s half year announcement for 2019. Presided over by its CEO Joshua Oigara, the financial institution reported admirable transactions that were performed outside its branches.

In particular, KCB says 96 percent of transactions were processed through mobile means, a point behind Equity. To this end, the period saw a 131 percent jump of non-branch banking, which also included agency banking to record over KES 5.2 billion in revenues.

At the same time, the bank reported a 441% rise in disbursed mobile loans compared to the same period in 2018. The bank gives out mobile credit to users via KCB MPESA. The product, which has since been revised to see a 7.5% interest rate from under 5 percent is one of the bank’s money makers in the mobile space, and will continue to one of its innovative platforms, besides Fuliza that it shares with telco Safaricom and CBA, of which KCB takes a 20 percent cut.

Furthermore, KCB recorded a 14 percent growth in net loans at KES 478.7 billion, the lion’s share of which was registered by mobile loans. Mobile credit further pushed gross loans and advances by 12 percent in the half under investigation.

Agency banking saw a 34 percent increase in the half under analysis, which is not surprising owing to the popularity of the services in the grassroots that play a pivotal role in ensuring customers do not have to cover long distances to branches.

These developments have seen a 5 percent drop in ATM use. Branches are now primarily used for corporate banking, advisory and sales.

“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,” said the Group CEO and MD.