Nigeria's Access Bank grows its reach to Kenya

Transnational Bank

Customers being served at a Transnational Bank branch in Nairobi.The lender's 24 branches in Kenya have been acquired by Nigeria's Access Bank  


Photo credit: File | Nation Media Group

Kenya’s efforts to achieve financial inclusion have been boosted by the entry of Nigeria’s Access Bank into the country, a move believed to help bridge the gap between the urban rich and the rural poor.

This comes months after the lender acquired all 24 branches of Transnational Bank, which has a history of financing smallholder farmers in Kenya’s remote zones.

The Kenyan Economic Report 2020 published by the Kenya Institute for Public Policy Research and Analysis (KIPPRA) estimates that 17 per cent of the rural populace in Kenya do not have access to formal financial services.

Access Bank said in a statement that its expansion into Kenya is a strategic decision, as it seeks to contribute to the growth of East Africa’s largest economy, terming Kenya a “leader in financial technology.”

The bank’s Group Managing Director and chief executive Herbert Wigwe has said that the bank will leverage its robust technology platform to provide cutting-edge financial solutions to the Kenyan population.

Economic potential

 “We are excited about the economic potential in the East African market. We will leverage our presence in key payment corridors, strong partnerships in non-presence countries, robust technology platforms as well as world class risk management to provide cutting edge financial solutions to our clients,” he noted.

The popularity of agent banking and mobile financial services in Kenya is one area that the Lagos-based lender will be looking to boost as it gives more low income families access to financial services in the communities they live in.

The Access Bank Group has over 41,000 banking agents, and believes and remains optimistic to leverage its expertise in agent banking solutions to bank the unbanked and underbanked in Kenya.

“Access Bank PLC’s business model mainly focuses on corporate and retail banking. Also, its strong Group support is expected to drive business growth for the benefit of the Kenyan economy and the banking sector.”

Speaking in preparation of the launch of Access Bank Kenya, Herbert Wigwe emphasised that Access Bank will leverage its expertise to support the development of the country.

Growth and development

 “We are committed to supporting the growth and development of our host community in line with our sustainability ethos. We will build on our legacy and expertise in the financial services industry to optimise growth in all business segments, whilst delivering value to stakeholders,” he said.

In recent years, Kenya has recorded year-on-year GDP growth, and it leads the East African sub-region in the usage of mobile money payment systems.

With 70 per cent of Kenya’s population living in the rural areas, according to census data of 2019, a more aggressive financial technology and financial inclusion drive is what is needed to improve lives.

The Nigerian lender is a leading full-service commercial bank operating through a network of more than 600 branches and service outlets, spanning three continents, 12 countries and over 40 million customers.

The Bank employs 28,000 people across all its operations in Nigeria, Sub-Saharan Africa, and the United Kingdom, with representative offices in China, Lebanon, India and the UAE.