Bid farewell to long lines at the teller window. Brick and mortar bank branches will soon be going the way of the dinosaur.
That’s the message that KCB Bank CEO Joshua Oigara delivered while presenting the group’s 2015 earnings results.
Over the past decade, Kenya has pioneered the convergence of financial services and mobile telephony. And Nairobi-based KCB is now beginning to reap the benefits.
Historically, KCB disbursed roughly 200,000 new loans per year. Then along came mobile banking, and loan applications skyrocketed. The bank made nearly 4,000,000 new loans in 2015.
This works out to one new loan every eight seconds.
And the vast majority of these borrowers (94% to be exact) never even walked through a KCB branch door. Instead, they simply applied for a loan with a few keystrokes on their mobile phones.