Co-operative Bank of Kenya is accelerating branch expansion this year with the opening of 15 new outlets even as it enhances its digital services. The director of retail and business banking, Mr William Ndumia, says the planned Co-op Bank branch network expansion will move services closer to the people.
“We want to be dominant in this market and there are some areas we have not gone into. There are even counties where we do not have a presence,” Mr Ndumia said.
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He was speaking at the signing of a new asset financing deal with motor vehicle dealer Isuzu East Africa through which Co-op will support schools and businesses in acquiring buses and commercial vehicles. The asset finance scheme will see schools enjoy a 100% financing while businesses will access 95 percent financing from Co-op Bank.
The 15 new branches will add to the eight opened last year and five in 2022. He increased infrastructural developments had opened up more towns and stimulated businesses and the need for banking services.
By end of Sept. 2023, Co-op Bank had 193 branches. There has been a reversal of trends in the banking industry, with most banks expanding their physical presence despite shifting most operations to digital platforms.
A survey by Kenya Bankers Association (KBA) shows that 45.7% of customers prefer fully-automated or self-service platforms, including mobile, internet and chatbots for their banking services while just 16.5% prefer human-assisted service.
Mr Ndumia says the market continues to face the pressure of physical presence especially in rural towns that have lately opened up to development and business.
Already, Co-op Bank has opened one branch in Ugunja town in Siaya County and will this month be opening another in Imaara Shopping Mall on Mombasa Road. It will then follow up with another branch in Luanda town in Vihiga County.
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