NCBA Group is set to grow its continental reach by launching digital banking services in Ghana. The bank estimates that it will start offering banking services in Ghana sometime in 2025. This has been announced by the NCBA Group Managing Director and Chief Executive Officer John Gachora.
According to Mr. Gachora, the NCBA Group has already applied for an operating license from the Ghana Government to offer digital banking services to Ghanaians.
“We have applied for a license to operate digitally. We are planning to work with Ghana’s local partners on a digital banking model the same way that we work with MTN in Ivory Coast and in other markets with MTN, Vodacom and locally with Safaricom,” said Mr. Gachora.
This means that the NCBA Group will not start off with physical banking services. According to Mr. Gachora, the bank will partner with either a microfinance or an existing bank in Ghana.
“Since we don’t have a bank, we will probably have to get a bank or microfinance partner. We shall provide our capability and our capacity for digital lending in the new market the same way that we have done in Kenya and other regional markets,” he said.
Mr. Gachora said that he estimates the NCBA Group’s digital banking services to be operational some time in the coming year. He singled out the Ivory Coast banking sector where NCBA has a presence as an inspiration.
“It was clear to us that Ivory Coast was a good market for us and so is Ghana. They are very much like Kenya, with good individual banking. If you look at our numbers from Ivory Coast, you will notice very high savings rates from customers, similar to what we see here with M-Swari. Ivory Coast has been profitable throughout the months,” said Mr. Gachora.
Currently, the NCBA Group operates a network of more than 100 branches in five countries including Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast. Serving over 60 million customers, the NCBA Group is the largest banking group in Africa by customer numbers.
Mr. Gachora announced on the same day that the NCBA Group announced a five per cent growth in its net profit for the half year period ended June 30.
During this period, the Group’s net profit grew from Sh. 9.4 billion that was posted in the first half of 2023 to Sh. 9.8 billion.
NCBA Group posts Sh. 9.8bn half year net profit, to pay Sh. 2.25 interim dividend
Interestingly, subsidiary contribution to the NCBA Group top line improved to 19 per cent during the financial period to June 2024 under review. Additionally, subsidiaries contributed Sh. 1.5 billion to the bank’s net profit.
“In totality, our regional subsidiaries have contributed Sh. 1.5 billion in profit after tax, which is about 15 per cent of the Group’s profit,” said NCBA Group Finance Director David Abwoga during the release of the bank’s financial results.