Thursday, 18 February 2016

CRDB microfinance bank in the offing

CRDB Bank is in final preparations for forming a microfinance bank which is planned to start operations in July this year if everything goes on well.
The bank said its subsidiary CRDB Microfinance Service would be turned into a full fledge microfinance bank after showing signs of becoming stand alone bank. The microfinance, which entered in a partnership with 482 SACCOs, has dished out 251bn/- loans to these groups by the end of last year.
CRDB Managing Director, Dr Charles Kimei said the idea behind was to bring closer and
better services to the micro-lenders. “Currently, the microfinance subsidiary has 75 service outlets across the country.
The units are enough to act as branches,” Dr Kimei said when launching events to mark the 20th Anniversary of the bank. The celebration dubbed 20 years of growth and transforming people lives will include the setting of CRDB Microfinance Bank in July.
“The main goal was to build a strong and a leading bank in the country that will deliver banking services, of international standard, close to the ‘wananchi’,” Dr Kimei said.
The microfinance bank will continue to serve its traditional clients such as SACCOS, VICOBA in agriculture and small scale businesspeople, while venturing out for new customers such as individual SMEs.
“The microfinance unit has already started to lend out to individual SMEs, but that will be the way forward,” Dr Kimei said. Coming July, CRDB will be the first large commercial bank to establish a full-fledged microfinance bank.
The banks boast for its innovative alternative banking products including letting customers to access their accounts using mobile phones, internet banking and mobile branches—full equipped with ATMs.
The Simbanking has clients base of one million, but fully registered are 500,000 customers, while Fahari Huduma has 1,769 agents. “By the end of this year the bank ATM’s are expected to reach 500 (from current 461),” Dr Kimei said.


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