Skip to content
Entrepreneur's Corner

NCBA Bank: The Crown Jewel Of Kenya’s Banking Sector – Why Every Entrepreneur, Business Owner, And Investor Must Bank And Invest With NCBA

BY Steve Biko Wafula · September 21, 2024 11:09 am

The Kenyan banking industry is characterized by fierce competition, innovation, and a plethora of options for customers. With 39 licensed commercial banks, the sector is as competitive as it is crowded, often raising questions about whether the market is overbanked.

However, one bank has risen above the noise and confusion to claim its place as the institution with the most bank accounts and deposits: NCBA Bank.

Through a combination of strategic growth, superior leadership, and an unmatched portfolio of services, NCBA has become the definitive choice for business owners, entrepreneurs, and investors alike.

Read Also: NCBA: The Bank Every Entrepreneur And Business Owner Must Bank With And Invest In

The Kenyan Banking Landscape

Before we dive into NCBA’s unique position, it is essential to understand the scope of the Kenyan banking market. The country boasts a total of 39 commercial banks serving over 25 million active bank accounts. This number is spread across diverse financial institutions, ranging from smaller, regional banks to well-established, international giants.

With this many options, the question of whether Kenya is overbanked is legitimate. A crowded market implies customers may be oversaturated with choices, leading to a fragmented financial experience. However, despite this competition, NCBA has managed to carve out its own space as a leader in customer acquisition and deposits.

NCBA’s Growth in Numbers

With over 53 million mobile money and bank accounts as of 2023, NCBA Bank leads the pack in terms of customer numbers. This growth has been anything but coincidental. NCBA’s strategy has always been based on leveraging technology and innovative financial products to reach a broad spectrum of customers, from individuals looking for a reliable bank to businesses needing more advanced banking solutions.

Moreover, NCBA has consistently expanded its customer base by offering digital banking services like M-Shwari and Fuliza, which are jointly developed with mobile service giant Safaricom. This collaboration has brought millions of unbanked and underbanked Kenyans into the financial fold, significantly boosting NCBA’s deposit and account numbers. In an environment where many banks struggle to maintain customer loyalty, NCBA has thrived by staying ahead of the curve with its forward-thinking approach.

Read Also: NCBA Bank Used USD 5 Million In 2023 To Fortify Its Cybersecurity

NCBA Bank Used USD 5 Million In 2023 To Fortify Its Cybersecurity

Strategy and Market Penetration

NCBA’s success can be attributed to a well-defined strategy that focuses on innovation, customer-centric products, and smart partnerships. By tapping into the mobile money market early, NCBA saw the potential for growth where other banks hesitated. The integration with Safaricom’s M-Pesa platform, especially with Fuliza—a credit overdraft service—was a game-changer. This product allowed millions of Kenyans to access credit quickly and efficiently, making NCBA their go-to financial institution for short-term liquidity needs.

Additionally, NCBA has a solid retail and corporate banking portfolio. Their wide range of loan products, savings plans, and investment options have made them a trusted partner for SMEs and large corporations alike. As a result, NCBA’s deposit numbers have surged, signaling the bank’s increasing dominance in the Kenyan market.

John Gachora’s Leadership: The Driving Force

At the heart of NCBA’s meteoric rise is the sterling leadership of John Gachora, the Group Managing Director. Gachora’s visionary leadership style is both bold and pragmatic. He has effectively steered the bank through mergers, notably the amalgamation of NIC and CBA, creating a more robust entity capable of competing on a global scale.

Gachora’s approach is highly inclusive, ensuring that the bank remains customer-focused while simultaneously driving innovation. His leadership has not only fostered internal growth but has also made NCBA more agile in adapting to market changes. Whether it’s embracing digital banking or expanding into new markets, Gachora’s ability to read and respond to market trends has kept NCBA ahead of the competition.

NCBA’s Stellar Performance on the NSE

Another area where NCBA shines is its performance at the Nairobi Securities Exchange (NSE). The bank has consistently outperformed its peers, making it one of the most reliable stocks for investors. Its steady growth trajectory has made it a favorite among institutional investors and retail traders alike, providing consistent returns in an otherwise volatile market.

Investors looking for stable, long-term growth have found NCBA to be a safe bet. With a dividend yield that has remained attractive over the years, NCBA is not just a bank but a valuable asset in any investment portfolio.

Read Also: NCBA Bank Used USD 5 Million In 2023 To Fortify Its Cybersecurity

An In-Depth Look at NCBA’s Services

NCBA offers a comprehensive range of financial services tailored to meet the diverse needs of its customers. Each service is carefully designed to provide maximum value in today’s competitive and complex banking environment:

Digital Banking: Through apps like NCBA Loop and NCBA NOW,  the bank provides seamless, 24/7 access to banking services. The apps are particularly popular among young professionals and business owners who prefer digital convenience.

Fuliza: As mentioned earlier, this overdraft service allows customers to access small loans via M-Pesa. This has made NCBA indispensable for everyday financial needs, particularly in rural and informal sectors.

Personal and Business Loans: NCBA provides a wide range of loan products, from personal loans for salaried individuals to more complex financing options for businesses. This versatility makes the bank an attractive option for entrepreneurs seeking capital to grow their ventures.

Asset Financing: One of NCBA’s most popular offerings is its asset financing products. Whether it’s purchasing vehicles, machinery, or other equipment, the bank offers competitive rates and flexible repayment plans to suit both individuals and businesses.

Trade Finance: For importers and exporters, NCBA provides trade finance solutions that ensure smooth international transactions. These services are crucial for businesses looking to expand their operations across borders.

Investment Products: NCBA offers a range of investment products, including fixed deposit accounts and access to unit trusts. For the savvy investor, these products provide a safe and profitable avenue to grow wealth.

Why NCBA’s Services Matter in the Current Market

In a market flooded with options, NCBA’s comprehensive service offering stands out. Customers are no longer looking for just a place to keep their money—they need a bank that offers them flexibility, innovation, and security. Whether it’s through digital banking or access to credit, NCBA provides solutions that fit the fast-paced and increasingly digital world of finance.

In particular, services like Fuliza and asset financing are invaluable to business owners and self-employed individuals who need quick, reliable access to funds. NCBA’s ability to offer these services at competitive rates puts it ahead of the pack.

Read Also: NCBA Partners With SACCOs On Strengthening Cybersecurity Measures

The Future of Banking and NCBA’s Role

As the future of banking becomes more digital, data-driven, and customer-centric, NCBA is already on the right path. With its robust digital platforms, forward-thinking leadership, and commitment to innovation, the bank is well-positioned to continue its growth trajectory. Furthermore, as the Kenyan economy expands and more businesses enter the formal sector, NCBA’s role as a financial partner will only become more critical.

Why Entrepreneurs Must Bank with NCBA

For entrepreneurs and business owners, NCBA offers more than just banking services—it provides the tools needed for success. From flexible loan products to comprehensive investment options, the bank’s offerings cater to the unique needs of entrepreneurs. Its customer-first approach, coupled with cutting-edge technology, makes NCBA the obvious choice for anyone serious about growing their business.

Investing in NCBA: A Smart Financial Move

Not only should entrepreneurs bank with NCBA, but they should also consider investing in the bank at the NSE. With its strong financial performance and leadership, NCBA offers a solid return on investment. Investors looking for stability in a fluctuating market will find NCBA stock a prudent choice.

NCBA – Go For It!

In a banking sector teeming with options, NCBA stands out as the bank to be with. From its comprehensive range of services to its strategic leadership under John Gachora, NCBA is perfectly positioned for continued growth. Every entrepreneur, business owner, and investor should not only bank with NCBA but also invest in its future at the NSE. The message is clear: NCBA is not just a bank—it’s the bank.

Read Also: For Every 4 Cars That Pass you In Traffic, The 5th One Is Financed By NCBA

Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters. He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com

Trending Stories
Related Articles
Explore Soko Directory
Soko Directory Archives