Digitization of banking services and products appear to be making great strides after Standard Chartered Bank of Kenya reported critical transformation that has helped the institution develop and scale new business models from investing in internet-based channels.
According to the lender, StanChart gained KES 9 billion in profit for a period of nine months ended 30 September 2019. Net interest income remained flat, however, due to compressed margins. The bank further reports interest rate drop by 6 percent to KES 19.1 billion due to deteriorating yields and reduced average investment in government securities.
Interest income from customer loans and advances grew by 2 percent on the back of higher average volumes.
Furthermore, total interest expense dropped by 24 percent to KES 4.4 billion from proactive management of the balance sheet.
Speaking of digitization, StanChart says customers have been receiving online services positively, and key client digital adoption measures continue to improve.
The bank’s mobile app is filled to the brim with more than 70 digital services (making it one of the most robust and big mobile banking app in the country). additionally, StanChart says that more than 80 percent of transactions can be performed using the platform.
What’s more, the financial institution says that near 90 percent of corporate clients are taking advantage of its Staright2Bank platform.
Over 20% of Kenya Revenue Authority tax receipts are processed through its real-time Integrated Tax Payment solution.
“We continue to focus on executing our refreshed strategic priorities and are determined to continuously enhance our service to our clients, our performance-oriented culture, and our profitability. We have built a resilient business over the last few years, and we look forward to the next year with confidence,” reads a statement from the bank.