Banks -Absa Bank Kenya PLC plans to expand its reach with more than 17,000 agency service outlets across the country.
The financial institution plans to actualize this in two years, making a return to markets that it abandoned seven years ago as it closed its branches.
The first phase of this rollout will see the Absa Bank increase its agency network from the current 600 to over 3,000, with a focus on broadening its presence and enhancing service delivery to the last mile.
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.
This expansion drive is an important strategic step towards meeting Absa Bank’s long-term growth and financial inclusion goals. It is also consistent with Absa’s new customer-centric brand promise and aims to bridge the gap for the underserved communities through a third-party network that includes general shops and convenience stores, among others.
Speaking about this development, Absa Bank Kenya PLC Managing Director and CEO, Mr Abdi Mohamed, emphasized the bank’s commitment to supporting customer growth stories, innovating, and offering solutions that enable them to meet their daily financial needs while living its purpose of ‘Empowering Africa’s tomorrow together, one story at a time’.
“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. 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,” said Mr Mohamed.
This distribution model will drive efficiency in Absa Bank’s business as it empowers individuals and businesses to thrive, added Mr Mohamed. This service expansion is consistent with customers’ growing preference for alternative banking channels, which is fuelled by the convenience afforded by the agency model.
According to the Central Bank of Kenya’s Annual Report for the financial year 2022/23, as of June 2023, there were 21 commercial banks and three microfinance banks engaged in agency banking, with a total of 85,328 and 936 active agents, respectively, since the establishment of agency model in 2010.
The report also noted a considerable increase in banking transactions through agents, with 1.3 billion transactions compared to 1.1 billion in June 2022. During the same time period, the value of agency banking transactions increased from Ksh9.0 trillion to Ksh10.8 trillion, demonstrating that agency banking services are becoming more widely used in Kenya.
