Thursday, March 5, 2015
MSHWARI VAULTS CBA PAST EQUITY AS LARGEST KENYAN BANK
CBA Bank has powered past Equity Bank as the largest bank by customer numbers in the country on the back of 10 million plus MShwari customers.
Equity Bank is estimated to have between 8 - to 9 million customers and has long been hailed as the largest bank by retail footprint in the country.
But riding on the back of the popular MPESA mobile money platform that giant telco Safaricom runs, CBA Bank has accumulated more than 10 million retail accounts to make it the first bank to have over 10 million customers in the region.
The privately-held bank is a modern day descendant of Bank of America, the largest US Bank which traded here before it left.
Back in 2006/7, when then Safaricom CEO Michael Joseph was shopping around for a bank to process his MPESA transactions, it was only CBA Bank that took the risk as all the big boys shied away.
The results tell.
Mshwari cumulative deposits to date amount to over Sh153billion.
Sh29billion has been disbursed in loans.
The platform processes 50,000 loans a day.
The Non-performing loan percentage is much lower than conventional banks.
In a statement, Isaac Awuondo, Group CEO said: "This milestone goes beyond a mere number and two institutions. It shatters the myths about how to scale social innovation in banking to expand financial inclusion."
The irony is not lost on anyone that one of the country's most exclusive banks, catering to high-net worth individuals and corporates has in the space of two years become also the largest grassroots lender in the country.