Co-operative Bank’s Growth Transformation to Leverage Mobile Banking

Mobile banking and internet banking will be a key area for Co-operative Bank of Kenya’s Phase II of the Soaring Eagle Transformation.

The phase will focus on sales optimization as more of the bank’s customers adopt alternative banking.

“Through our multi-channel strategy the Bank has successfully moved 87 percent of the customer transactions to alternative delivery channels particulate mobile banking, ATMs, internet and Co-op Kwa Jirani banking Agency outlets,” said the Group’s Managing Director Gideon Muriuki after the Bank posted a pretax profit in the first half of 2016 by 19 percent to 10.45 billion shillings last week.

Cytonn Investments says they expect the bank to continue implementing its key transformation steps, including automation and use of alternative channels to support future growth.

Mobile banking has been acclaimed for its role in serving the unbanked population and changing the shape of the traditional banking, thereby offering a great market for technology providers to participate in banking channels and enhancing the financial inclusion across the globe.

Read: Kenya Leads in Financial Inclusion Globally – Brookings Institution Report

Advantages of mobile banking and internet banking services lower costs and time to send and receive payments, it enables to create history of transaction and pave ways for availing credit facilities.

For Central Bank of Kenya (CBK) and policy makers, it helps in maintaining greater transparency, expansion of access to financial services, and promotes competition, increased efficiency, and innovation in the financial market.

“Robust ICT platforms have enabled financial institutions respond to the demand of the growing middle class population by offering  electronic based banking services such as mobile and internet banking. A few banks use mobile phone platforms to grant short term loans to customers and this has gone a long way to promote financial inclusion,” says CBK in its Bank Supervision Annual Report 2015.

For Co-operative Bank, mobile banking continues to increase customer satisfaction to its over 2.85 million active users providing convenience and efficiency.

The mobile banking services offered under MCo-op Cash include: Depositing money into your bank account at any time (as opposed to the strict banking hours). You can send and receive money from other MCo-op Cash users, Co-op account or Co-op SACCO account.

In addition to being able to deposit money into MCo-op Cash from M-pesa, one can withdraw MCo-op Cash money at any Co-op bank agent or ATM country-wide.

Dial *667# to open a MCo-op Cash Account or download the MCo-op Cash app from the app store.