Co-operative Bank of Kenya has bucked the industry trend where several lenders have rolled back their brick and mortar footprint, and is expanding physical outlets to add onto the current 173 branches in Kenya.
The bank will open seven new branches in Kamakis on Nairobi’s Eastern Bypass, Kabarnet, Iten, Moyale and Mwiki/Kasarani, Bunge at the new Parliament Tower in Nairobi. The bank has already opened a branch at Kamulu in Nairobi Eastlands.
The expansion of brick and mortar presence is expected to complement the bank’s robust digital banking channels now handle over 90 per cent of customer transactions. The bank’s Mco-opCash mobile wallet has registered 5.3 million users and disbursed Sh. 51.3 billion in loans as at the close of the third quarter of last year, averaging Sh. 5.7 billion per month.
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Director Retail & Business Banking William Ndumia presents a gift to Mr. who was the first client to open an account after the official opening of Co-op Kamulu branch Mr Joseph Kimathi Ndegwa . Looking on is the bank’s Head of Branch Banking Peter Kirugu. PHOTO| BiznaKenya
The new branches are not expected to raise the cost of operation, as staff will be fished from the existing workforce following the branch transformation and digitization program implemented under the Soaring Eagle project that has enabled agile resourcing of the business.
“We believe there is no one single channel that will displace all others, rather, it’s the investment in an optimal and balanced multichannel strategy that will offer a fulfilling experience to the customer,” said Co-op Bank in a statement. “The emerging theory that bank branches and ATMs will cease to exist is largely wishful thinking driven by desires to cut brick and mortar costs, and not by credible customer feedback on the service outlets through which customers prefer to be served.”
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In addition, although there are many customers who will do some transactions online or on cellphone, a significant section of customers will always prefer to engage a bank through a physical branch, especially for certain services, for a long time to come.
“Co-op Bank branches serve not just own customers, but also service the bank’s subsidiary network including Saccos, and especially those running FOSAs now numbering 479 countrywide, and 23,000 bank agents who depend on our cash management services, training and supervision to run,” the bank added.
