How to Expand your business by becoming a Co-op Bank Agent

Co-operative Bank of Kenya Limited (NSE: COOP) has focused on the country’s SME market with specific products tailored for it.

The bank in a bid to reduce operating expenses and improve efficiency, it has placed emphasis on innovation, and agency banking as a key driver of diversification for banks and a distribution channel of banking products.

Kenyan banks recorded  30.9 percent improvement in agency banking attributed to the growth of transactions relating to payment of retirement and social benefits, transfer of funds, cash deposits and cash withdrawals according to the latest data from the Central Bank of Kenya “Bank Supervision Annual Report 2016.

For Co-op bank, agency banking has made it possible to reach many underserved areas, increasing the access to, and availability of, financial products and services without having to invest in ‘bricks and mortar’ bank branch infrastructure.

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“This is a convenient and simple banking model to suit your lifestyle as well as offer you convenience,” says the bank on its website.

Popularly known as Co-op Kwa Jirani, they offer banking services such as registering customers, taking deposits, dispensing withdrawals, funding transfers, processing payments (e.g. utility bills) among other services.

According to the bank, “Becoming a Co-op Kwa Jirani Agent expands one’s business revenue through the commissions earned on transactions.”

Those seeking to become agent do not necessarily have to be Co-operative Bank account holder to be accepted as agents.

Just visit your nearest Co-op Bank branch, fill in an application form and submit the following documents along with the application form:

Certificate of good conduct (for the individual)
PIN certificate
Bank statements if you are not a Co-op Bank account holder
Business permits for the last 12 months
Current business permit
Certificate of registration
Copy of ID or equivalent
Two passport size photographs
Business owners’ or directors’ CVs
CBK Form 3 & CBK Form 4 witnessed by Commissioner of Oaths

However, you will need to raise KSh 1,000 application fee charged by Central Bank of Kenya. You will also need to place a float.

According to Co-op Bank, the float will be determined by customer limit during the appraisal.
According to Co-operative Bank, the following are eligible to apply to become agents with the bank:

Limited liability companies.
Sole proprietorships.
Partnerships
Societies
Co-operative societies
State corporations
Trusts
Public entities

To apply to be an agent, you will need the following documents when you visit the Co-operative Bank branch for application:

Certificate of good conduct (for the individual)
PIN certificate
Banks Statements if you are not a Co-op Bank account holder
Business permits for the last 12 months
Current business permit
Certificate of registration
Copy of ID or Equivalent
Two passport size photographs
Business Owners’/Directors’ CVs.
CBK Form 3 & CBK Form 4 witnessed by the commissioner of Oaths.

Corporates seeking to open agencies will need to provide the following additional documents:

Audited books of accounts for the last two years
Resolution to carry out agency banking.
SASRA approval for FOSA’s
VAT registration (where applicable)