Online Banking Key Driver for Equity Group Growth

Kenya’s Equity Bank Group has cited online banking as a driver to its growth after witnessing significant growth in transaction numbers and values.

James Mwangi, the group’s Chief Executive Director on Tuesday said, “Our strategy of acquisition of an MVNO was to ensure we offer a secure mobile banking platform through Equitel. We see the future to be driven by the digital bank, not the bricks and mortar.”

“The volume of transactions on digital channels increased significantly with the number of transactions on agency network increasing by 35% to reach 51.3 million, while transactions on mobile banking platform Equitel increased by 1000% to reach 151 million. The volume value of the digital transactions for Agency network increased by 37% to reach Kshs.341.5 billion, merchants business volume by 54% to reach KShs. 38.2 billion, while volume of total loans disbursed on mobile reached Kshs.8.5 billion on account of 1.922 million loans. The total number of mobile loans accounted for 78% of all the loans disbursed during the year.”

Mwangi further noted that the branches will not be shut due to the ongoing digitization process. He said they will be transformed to SME centres and Wealth Management centres.

The group made a profit after tax of Sh17.3 billion, a slight increase from the Sh17.2 billion reported in 2014.

The group continues to focus on its long-term strategy of regional expansion to take full advantage of economic regional integration and increasing intra-Africa trade.