Newly launched NCBA Group plans to expand its business in Kenya and the region, targeting small and Medium-Sized Enterprises. Its banking arm, Kenya’s third-largest lender by asset base, plans to increase its footprint beyond the 17 counties it operates in.
[bctt tweet=”According to NCBA Group Managing Director Mr. John Gachora, the bank plans to expand its branch network to reach more people in the retail sector.”] “We want to scale up retail banking through expanded distribution, and that means our branch network must expand,” said Mr John Gachora during the unveiling of the new brand in Nairobi.
Moreover, the expansion bid relies on optimism in the growth of the retail sector. [bctt tweet=”At the moment, most of the revenue in the banking segment comes from the corporate sector and treasury. While the Corporate and treasury segments generate 60 percent of the revenue, SMEs and retail consumers contribute 40 percent of banks’ revenues.”]
However, the bank is counting on retail to offer the next big break, hence the expansion decision. “Our projections show that retail banking will offer the next big growth and so we want to expand to counties which are becoming significant centers of wealth,” stated Mr. Gachora.
Nevertheless, investing in new branches comes at a cost. Setting up offices is an expensive venture. NCBA Group intends to heavily rely on digital platforms as opposed to banking halls to grow its customer base.
“Bank branches are expensive, but we will go for more affordable ones oriented towards sales as opposed to service. We want services to be digital,” said Mr. Gachora.
