Co-op Bank is set to unveil five new branches in Nairobi, Kapenguria, Maralal and Chogoria in an effort to further expand its local footprint and customer base.
Two of the five new branches will be located in Nairobi, one along Kenyatta Avenue at Standard Building and another at the upcoming Parliament tower, while the remaining aforementioned towns will play home to a branch each.
According to the Business Daily, Co-op Bank Chief Executive Gideon Muriuki insisted that the bank settled on the five locations after conducting in depth market analysis on the areas. He similarly reassured customers that the new outlets will work hand in hand with the lender’s alternative service channels such as agency banking.
“We believe there is no one single channel that will displace all others. Rather, it is the investment in an optimal and balanced multichannel strategy that will offer a fulfilling experience to the customer,” Mr Muriuki said according to the Business Daily.
Mr. Muriuki similarly explained that the Kenyatta Avenue branch will launch soon with the outlet’s layout and branding nearing completion. The move is set to increase competition in the prime city street which is home to other banks such as Sidian, Equity, Standard Chartered, I&M, Gulf African, National Bank of Kenya, Bank of India, Ecobank and Stanbic banks. The number of banks on Kenyatta Avenue underscores the significance of the location to players in the banking industry.
Despite the growing trend that has seen lenders offer banking services on digital platforms rather than opening new outlets, the move by Co-op adds on to the lender’s knack of unveiling new outlets every year. In 2018, the bank increased its total branch network to 155 up from 148 registered in 2017. This led to the employment of 182 people.
In the first six months of the year, Co-op Bank posted a pre-tax profit of Ksh. 10.4 billion compared to Ksh. 9.98 billion registered in a similar period last year. The five percent increment translates to the bank posting a Ksh. 7.5 billion profit after tax compared to Ksh. 7.1 billion in the first six months of 2018.
According to the bank, the increase in profits was as a result of the bank implementing an all rounded transformation strategy dubbed “Soaring Eagle” that has restructured the business to have an added competitive edge over other rival banks.