NIC Bank continues with branch expansion plan

Muthini, NIC Bank’s Head of Branch Business welcomes a customer, Samo Bryton, to the bank’s new branch at Rosslyn Riviera Mall located along Limuru Road, during the official opening on 10th February, 2017. The bank’s 34th branch in Kenya aims to target the Retail and SME clientele in the area.

NIC Bank today opened a new branch at the Rosslyn Riviera Mall along Limuru Road. The new branch is NIC Bank’s 34th branch in Kenya, and 41st in the region.

Commenting on the branch opening in Rosslyn, John Gachora, the Group Managing Director for NIC Bank, noted that the new branch will offer a full array of financial products and services that will meet the growing demand for the bank’s services by retail customers in the area.

“The opening of this new branch was driven by a strong demand for our retail banking and Asset Finance offering in the area,” he said.

The nascent Retail Banking sector in Kenya has grown consistently in recent years due to deepening financial inclusion. Kenya has witnessed a more than 50% increase in financial inclusion over the past decade, and 75.3% of Kenyans are now formally included in the financial system, according to a 2016 survey by FinAccess.

NIC Bank’s branch expansion in the retail banking space is set against the backdrop of industry wide cost cutting across the sector in response to thinning margins brought about by the Banking Amendment Act (2016). As a result, many banks have halted branch expansion in favour of digital channels such as mobile banking in order to save on costs.

“Although the flight to digital channels is inevitable, it is our view that the branch is not dead.  Branches will remain an essential channel to attract and maintain customer relationships.  Retail banking success will be tied to the ability to offer the right products in an accessible and efficient manner,” said Mr. Gachora.

SMEs are a key focus area for NIC Bank. “We have a sizable SME portfolio, which we are targeting to increase substantially in the coming years,” noted Mr. Gachora, citing the instrumental role that SMEs play in driving economic growth and creating employment opportunities.

In 2016, the Bank opened seven new branches across the country. It has two branches in Uganda and four in Tanzania. In an effort to continue improving customer experience in the banking halls, the bank is also refurbishing and expanding some of its older branches with City Centre Branch being the latest branch to re-open its doors to customers earlier in February. The Junction and The Mall branches were refurbished last year.