Regional towns emerging as growth engines for banks
Across Kenya, new and emerging towns are presenting fresh opportunities for businesses seeking to grow their presence and therefore, market share. Towns, powered by rich surroundings such as farmlands and favourable climate are increasingly becoming centres of industry, in turn catching the eye of financial institutions such as banks.
Tipped to become a city, Eldoret for instance, is becoming an attractive destination for banks keen on expanding their reach and capturing new market segments. With a growing population, the North Rift town is turning into a hub of entrepreneurship, education, and healthcare, in turn attracting a diverse population, including students, investors professionals from different fields.
As these changes happen, bankers are seizing this moment, setting up branches and rolling out tailored financial products and services such as agribusiness credit facilities, healthcare financing, student and school accounts, and SME banking services among others, thereby accelerating the journey to economic growth.
Absa Bank is driving its brand expansion strategy, distinguishing itself by delivering innovative solutions tailored to the local market’s unique needs. The bank has been actively expanding, reaching 85 branches with the opening of its latest outlet in Rupa’s Mall, Eldoret.
Shari’ah-compliant
Customers will have access to transactional accounts, savings accounts, deposit accounts, Shari’ah-compliant solutions, financial advisory services, and more.
“We are happy to open our doors to the people of Eldoret and the larger Rift region with our second branch in Eldoret. This is part of our ongoing commitment to enhancing customer experience and expanding our footprint to serve the underbanked,” said Absa Bank MD & CEO Abdi Mohamed.
According to the Central Bank of Kenya (CBK) 2023 banking industry report, lenders opened a total of 15 branches in Nairobi, but the growing trend towards emerging and new growth areas was telling. While Kenya has a high level of financial inclusion over digital channels, rural areas are still underserved by the boutique options offered by a physical bank.
Absa Bank CEO says the lender’s strategy is to extend banking services to the growing business community in the North Rift region, and offer enhanced customer experience to its growing number of customers in sync with the bank’s commitment to empower Africa’s tomorrow together, one story at a time.
Eldoret, Kenya’s fifth-largest town, is known for its economic contribution through large-scale grain farming, dairy and horticultural farming, trade and commerce, an expansive manufacturing sector, a booming hospitality and tourism sector, and a rapidly growing micro, small, and medium sector.
Its growing real estate offers banks lucrative locations in business hubs such as Rupa’s Mall, an expansive development spread out on 8.5 acres that hosts, among other things, a 100-room hotel, a supermarket, restaurants, offices, banks, cinema theatre, children’s play area, and water park, as well as regular retail shops and boutiques.
Read also: Absa opens UK market doors for women entrepreneurs
One-stop shop
This offers the lender a steady footfall seeking a one-stop shop for all investment, banking and trading needs for customers in the region and provides a full bouquet of services across retail banking, corporate and investment banking, and business banking.
The Rupa’s Mall branch targets the ever-growing consumer and business markets in Eldoret and its environs and will offer diverse services such as forex exchange, money transfer, bill payment, and digital services among others.
With this expansion, the bank aims to accelerate its customer-centric approach by increasing its physical presence through the opening of additional branches, leveraging digital capabilities, and enhancing its agency banking network. This strategy ensures uninterrupted service delivery while driving financial inclusion.
As Eldoret evolves into a city status, an enhanced road network and digital connectivity infrastructure will help in paving the way for rollout of innovative banking services.
Increased economic activity in Eldoret is poised to stimulate demand for more financial services such as investment advice as well as wealth management services. The story of Eldoret – the city of champions – reflects the broader trend of emerging urban centres in Kenya, which can turn into critical engines for the banking industry.
