Mengo NAIROBI (Xinhua) --
Sometime back, when one walked into a Kenyan bank,
all they got were banking services that include loan
application, account opening, depositing and
Today, however, Kenyan
banks are turning into one-stop shop for various
services that include insurance and stock brokerage
as they seek to boost their revenue streams.
The banks are leveraging on technology, in
particular mobile apps, to offer not only their
traditional services but also the new ones.
Just by clicking on the apps, one gets insurance
services, popularly known as bancassurance, or opens
an account and they can sell or buy stocks.
Through the apps, the financial institutions are
not only protecting their turf but also aggressively
searching for new business in areas outside their
All the major Kenyan banks currently have mobile
apps through which they offer their services. Kenya
Commercial Bank (KCB), east African nation’s largest
bank, has KCB-Mpesa, Equity Bank has Equitel,
Barclays Bank Timiza while Cooperative Bank M-Coop
Barclays Bank and Consolidated Bank are the
latest entrant into bancassurance and stock
brokering services, joining KCB, Cooperative Bank,
Commercial Bank of Africa, Diamond Trust Bank and
Equity Bank, among others.
Banks are going into insurance services because
they have recorded tremendous success in their own
businesses thus have the capability to replicate
this achievement in other sectors, according to
Thomas Kiyai, chief executive of Consolidated Bank.
In 2018, I&M Bank acquired Youjays Insurance
Brokers while KCB partnered with Liberty Insurance
to offer an education policy.
At least 10 out of 42 Kenyan banks have
Insurance penetration in Kenya stands at less
than 10 percent, according to Kenya’s Insurance
Regulatory Authority, while close to 30 million
Kenyans have bank accounts.
Therefore, while offering bancassurance services,
banks are seeking to use their numbers and trust
customers bestow on them with their funds to tap
into the massive opportunity in the insurance
"Technology is certainly creating linkages
between the sectors therefore is the driver of
growth in the banking industry.
"It is making banks find it easier to offer more
services at a click of a button," said Bernard Mwaso
of Edell IT Solution.
He added that armed with a smartphone, the modern
customer is seeking convenience.
"Banks must therefore offer them what they want
by embracing mobile apps to offer their services.
"And this comes at a lesser cost for the
financial institutions, unlike opening brick and
mortar branches to offer insurance and stockbroking
services," he observed.
Cytonn, a Nairobi-based investment firm, said
that Kenyan banks are not only promoting the usage
of mobile banking, but also internet banking and
agency services as they seek to grow transactional
According to Cytonn, digital channels currently
account for 70 percent to 90 percent of transactions