10 Reasons Why NCBA Is The Bank To Watch In 2023

Kenya currently has at least 28 domestic banks, and 14 foreign commercial banks with branches, agencies, and various outlets. In total, there are at least 42 banks in Kenya. The numbers are likely to reduce or increase based on acquisitions.

With so many banks in Kenya, at one point, the country was said to be overbanked with each lender striving to have a share of customers whose needs and demands keep on shifting and changing with each passing day.

The current Kenyan bank customer is continuously looking for a service provider that will:

• Provide personalized products and services
• Listens to them in through customer service
• Ready to grow their ideas from nothing to something

As such, Kenyan banks have been working around the clock to ensure that they come up with products and services that not only retain their current customers, but also attract new ones, either from competitors or those banking for the first time.

As the 2023 year kicks off, NCBA Bank Kenya is one of the banks to watch this year based on the following 10 reasons:

Fastest growing bank in Kenya

As of Q3 of 2022, NCBA Bank Kenya emerged as the fastest-growing bank in Kenya both in profitability and assets. The bank single-handedly contributed 98 percent of NCBA Group’s profits for the Q3 of 2022. The bank’s profits ballooned 96 percent in Q3 to 12.8 billion shillings.

Given the steady growth of the lender, with more Kenyans gaining trust, analysts within the sector say it is the bank to watch this year. With the return of the mobile to bank charges, analysts have foreseen, profits for various banks, not just NCBA increasing during the Q1 of 2022.

The best stock at the Nairobi Securities Exchange

The Nairobi Securities Exchange (NSE) has experienced a myriad of challenges including the Covid-19 pandemic that ravaged various economies. The bourse saw foreign investors take off or opt to invest in other “safer havens” such as Gold.

Despite all the challenges, coupled with the invasion of Ukraine by Russia, NCBA Bank emerged as the top stock at the NSE. The Group’s share jumped 57.94 percent in 2022, making it the top performer at the Nairobi bourse that shed 650.1 billion shillings last year.

Leader in digital banking

Digital banking has gained momentum in Kenya. With platforms such as M-Pesa, Kenya has been placed on the global map in terms of financial inclusion. Dominating the space for over 10 years, and beating more than 20 other giants.

NCBA Bank is among the few that have discovered the power of digital banking and lending. For the first 9 months to September 2022, the lender was the leading lender in digital banking loan disbursement, driving total loan disbursement to 521 billion shillings.

Focus on Small and Medium Enterprises (SME)

Kenya’s economy thrives on the wheels of small and medium enterprises (SMEs). The sector is so important that it employs at least 86 percent of Kenya’s population and contributes about 45.5 percent to the country’s GDP. It is, therefore, suicide for any lender to ignore this niche.

NCBA Bank, although has not been very pronounced in terms of going ham on SMEs, has some products that meet both SME owners and SME demands. They included overdrafts, personal loans, and asset finance. The bank also has business loans that offer some of the market’s best rates and flexibility to suit one’s needs.

Big on customer care services

No business operates in a vacuum. Any business that operates in exclusion is like a man who winks at a beautiful girl in total darkness expecting her to reciprocate. Businesses are because of customers and the current customer is “petty” in a positive way. They are looking for a service provider who speaks their language and addresses their grievances when they arise on time.

NCBA seems to have learned the art of communication and has gone big across social media platforms, especially Twitter and Facebook. Many customers point out that they are among the lenders who promptly and professionally reply to their customers either in direct messages or on timelines.

Continuation of brick and mortar

As other banks were busy shutting down physical branches, NCBA Bank was opening new ones. Opening branches and taking them closer to the people makes people feel in touch with the bank, a move that encourages cheaper deposits.

In 2022, the bank had already opened 17 branches in Kenya with plans to add 7 new ones at the end of 2022. The lender, however, rationalized 5 branches due to proximity. The bank also seemed to have gone ham in Western Kenya, capitalizing on Kakamega, Bungoma, Kericho, and Busia.

With Nairobi as its stronghold, as well as Central Kenya and its environs, the bank has branches in Sarit Centre, Mitchell Cotts, River Road, Gikomba, Ngong, Utawala, Ruiru, Kiambu, Karatina, Nyeri, Embu, and Naivasha.

Asset Finance

Owning a car is becoming a necessity in Kenya. As such, NCBA Bank has one of the largest asset financing platforms called Carduka that gives customers a 360 degrees experience in car ownership, what is needed, and how to own one. The platform has transformed the sector as it also gives people opportunities to find the nearest service centers with the click of a button.

As the bank itself puts it, “We know you’ve got big dreams to grow your business so don’t just sit back. NCBA Bank assists clients to acquire new and used movable assets at competitive interest and term rates.”

Investor Trust

As a listed company, NCBA Group relies more on the trust of investors (shareholders) to continue flying. They say a business does not sell products and services, but it sells trust. People sell people. As the best stock at the NSE in 2022, NCBA Bank (Group) will continue attracting more investors within its fold.

The Group’s share jumped 57.94 percent in 2022, making it the top performer at the Nairobi bourse that shed 650.1 billion shillings last year.

Fuliza and M-Shwari

Let us face it, these two products (Fuliza and M-Shwari) are the two biggest sources of fast and short credit for millions of Kenyans. Although other players like Safaricom are involved, NCBA has a stake and will continue giving competitors a run for their money. The only close competitor in this field is Hustler Fund but still has a long way to beat Fuliza.

Focus on community initiatives

A good brand invests in people and NCBA Group has developed a strategic framework that is tailored towards driving the group’s community initiatives that deliver relevant and positive impact to society.

Related Content: Unpacking The Numbers In NCBA’s 92% Profit Growth