Absa Bank Kenya has indicated that it plans to open over 17,000 agency service outlets across the country in two years.
The first phase of the rollout will see the Bank increase its agency network from the current 600 to over 3000 immediately, with a focus on broadening its presence and enhancing service delivery to the last mile.
The project 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.
This expansion drive is an important strategic step toward meeting the Bank’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.
Absa Bank Kenya PLC Managing Director and CEO, Abdi Mohamed, emphasized the Bank’s commitment 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. 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.”
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.