Absa Bank Kenya has announced plans to expand its reach with over 17,000 agency service outlets across the country.
In a press release issued on August 21, the bank said that this expansion will be implemented in two years, with the first phase increasing its agency network from the current 600 to over 3,000.
Absa noted that this initiative aims to broaden its presence and enhance service delivery to underserved communities.
“The first phase of this rollout will see the Bank increase its agency network from the current 600 to over 3000 immediately, with a focus on broadening its presence and enhancing service delivery to the last mile,” read the statement in part.
This expansion will allow both existing customers and non-customers to conveniently conduct cash deposits, withdrawals, and other transactions through various third-party outlets, including general shops and convenience stores.
“The project aims to enhance accessibility to essential financial services for individuals and businesses within their localities, offering both existing and non-customers the convenience of conducting cash deposits, withdrawals, and other transactions through third-party outlets.
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Abdi Mohamed, the Managing Director and CEO of Absa Bank Kenya PLC, emphasized the bank’s commitment to supporting customer growth and meeting their daily financial needs.
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He said that the initiative reflects Absa’s commitment to its new customer-centric brand promise, “Your Story Matters.”
Additionally, Mohamed emphasized that the agency network is a crucial component of how the bank serves its diverse clientele from all walks of life.
“As a full-service Bank, we cater to customers from all walks of life – from clients who only interact with us digitally, to those who prefer the reassurance of talking to one of our colleagues in-branch or through a third party, we are a Bank for all seasons,” said the CEO.
“As we embrace the evolving landscape, agency network is a critical piece of how we serve our customers, and we are keen on it. Our footprint will continue to grow over time, and we are focused on demystifying banking for all,” he added.
He expressed confidence that the agency model will not only drive efficiency within Absa’s operations but also contribute to the overall growth of the economy by delivering financial services to areas that have traditionally been underserved.
“This distribution model will not only drive efficiency in our business as we empower individuals and businesses to thrive but also contribute to the growth of our economy by facilitating essential financial services in underserved areas”, added Mr. Mohamed.
Absa Highlights Agency Banking’s Growing Popularity
The statement also cited the Central Bank of Kenya’s Annual Report for the financial year 2022/23 noting that it provided sufficient evidence of the growing popularity of agency banking in the country.
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As of June 2023, the report indicates that there were 21 commercial banks and three microfinance banks actively engaged in agency banking, with a total of 85,328 and 936 active agents respectively.
Furthermore, the report notes an increase in banking transactions conducted through agents, rising from 1.1 billion in June 2022 to an impressive 1.3 billion in June 2023.
“During the same time period, the value of agency banking transactions increased from Kes 9.0 trillion to Kes 10.8 trillion, demonstrating that agency banking services are becoming more widely used in Kenya,” noted Absa.
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