The Co-operative Bank of Kenya (Co-op Bank) has announced intentions to open seven new branches across the country to tap into new opportunities and expand its customer base.
The expansion will see Co-op Bank hit 200 branches in the country, despite migrating 90 percent of transactions online.
Among the areas targeted for new branches include Kamakis on Nairobi’s Eastern Bypass, Kabarnet, Iten, Moyale, Mwiki/Kasarani, Bunge(new Parliament Tower in Nairobi), and Kamulu in Nairobi’s Eastlands.
Read: Co-operative Bank makes history with new acquisition
“The emerging theory that bank branches and ATMs will cease to exist is largely wishful thinking driven by desire to cut brick-and-mortar costs, and not by credible customer feedback on the service outlets through which customers prefer to be served,” Co-op Bank’s chief executive Gideon Muriuki said.
The move by Co-op Bank comes at a time most lenders are reducing their branches in a bid to cut costs, as well as allowing other channels such as agent and online banking
The move is part of its medium-term strategy focused on local expansion and also maximise opportunities in the Kenyan market which remains the most profitable for homegrown lenders.
Read: Co-operatives In 20 Counties To Get KCB Foundation Funding
The lender has been in an expansion spree, growing from 152 branches in 2019 to the current number of branches, which stands at over 190 branches countrywide.
In 2019, the lender said that the emerging theory that the bank branch will cease to exist is largely wishful thinking driven by desires to cut brick and mortar costs, and not by credible customer feedback on the service outlets through which customers prefer to be served. Whilst some customers will do some transactions online or on cellphone, a significant section of customers will always prefer to engage a bank through a physical branch, especially for certain services, for a long time to come.
The ongoing migration of routine bank transactions such as cash withdrawals, deposits and payments to alternative channels offers banks the space for deeper engagements with customers and the wider community. This includes more focus on customer advisory, consultancy and training, to build lifelong relationships, brand immersion and sustainable value-add to the communities in which we do business.
Like with other lifelong relationships, banking needs to be nurtured and not treated as a one-off transaction to be done in a hands-off fashion.
Read Next: Co-op, Equity, KCB harvest from digital revolution