Absa eyes 17,000 new agency outlets by 2026
Absa Bank Kenya is embarking on a transformative journey seeking to take banking services even closer to the people. The lender has set sights on over 17,000 agency banking outlets across Kenya by 2026 to ensure that individuals and businesses do not travel far to get services.
In this undertaking, Absa Bank will unveil 3000 agency outlets immediately, significantly raising its network from the current 600 shops offering last mile services to customers.
Absa Bank Kenya CEO, Abdi Mohamed says the lender is committed to supporting customers’ growth stories, innovating, and offering solutions that enable them to meet their daily financial needs while living its purpose of ‘Empowering Africa’s tomorrow together, one story at a time’.
“As a full-service Bank, we cater to customers from all walks of life – from clients who only interact with us digitally, to those who prefer the reassurance of talking to one of our colleagues in-branch or through a third party, we are a Bank for all seasons.
“As we embrace the evolving landscape, agency network is a critical piece of how we serve our customers, and we are keen on it. Our footprint will continue to grow over time, and we are focused on demystifying banking for all,” said Mr. Mohamed.
The journey to 17,000 outlets aims to enhance accessibility to essential financial services for individuals and businesses within their localities, offering both existing and non-customers the convenience of conducting cash deposits, withdrawals, and other transactions through third-party outlets.
In an update, Absa said this expansion is a strategic step toward meeting it’s long-term growth and financial inclusion goals. It is also consistent with Absa’s new customer-centric brand promise, ‘Your Story Matters’, and aims to bridge the gap for the underserved communities through a third-party network that includes general shops and convenience stores, among others.
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“This distribution model will not only drive efficiency in our business as we empower individuals and businesses to thrive but also contribute to the growth of our economy by facilitating essential financial services in underserved areas”, added Mr. Mohamed.
This service expansion is consistent with customers’ growing preference for alternative banking channels, which is fuelled by the convenience afforded by the agency model.
According to the Central Bank of Kenya’s Annual Report for the financial year 2022/23, as of June 2023, there were 21 commercial banks and three microfinance banks engaged in agency banking, with a total of 85,328 and 936 active agents, respectively, since the establishment of agency model in 2010.
The report also noted a considerable increase in banking transactions through agents, with 1.3 billion transactions compared to 1.1 billion in June 2022. During the same time period, the value of agency banking transactions increased from Kes 9.0 trillion to Kes 10.8 trillion, demonstrating that agency banking services are becoming more widely used in Kenya.
