Equity bank disbursed 2M loans in six months; 1.9M through Equitel mobile platform

The Group’s Chief Executive James Mwangi said the bank is adapting to customer’s emerging needs, aspirations and preferences.

Additionally, the number of Eazzypay transactions grew by 101% from 574,000 to 1.5 million transactions.

Equity Group half year results back a pervasive trend where customers are taking to the convenient and fast mobile channels to transact, ditching the branches.

However the total value of mobile loans was worth Sh70.9 million compared to the 100,000 branch loans that totaled Sh20 billion

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The Group’s Chief Executive James Mwangi said the bank is adapting to customer’s emerging needs, aspirations and preferences.

“As demand for these services evolve in tandem with the changing lifestyles, we are positioning ourselves to create new bridges of opportunity for Kenyans by combining the empowering nature of access to credit with the reach and transparency of technology,” Equity Group Managing Director and CEO James Mwangi

“97% of all our transactions are happening outside the branches,Our customers have finally accepted virtualization & digitization of the bank,” he added.

The bank’s mobile transactions rose to 77.4 percent, compared to 76.4 percent recorded during a similar period a year earlier.

The bank’s Eazzy app transactions grew by 28 percent to reach 146 million up from 114 million transactions while Equitel transactions grew by 5 percent from 121 million to 126 million transactions.

“We strive to respond to our customers’ emerging needs, aspirations and preferences. As demand for these services evolve in tandem with the changing lifestyles, we are positioning ourselves to create new bridges of opportunity for Kenyans by combining the empowering nature of access to credit with the reach and transparency of technology,” Equity Group Managing Director and CEO James Mwangi said.

Agency banking was the second most used at 12.2 percent and conducted 44 million transactions.

This was followed by automated teller machines (ATMs) at 3.7 percent. Branches came last at 3.4 percent.

The figures were revealed during the company’s half-year results where the bank posted Sh12 billion in profit after tax, marking a 9 percent growth.

The Group registered an 18 percent growth in total assets to reach Sh638.7 billion up from Sh542.02 billion registered the same period the previous year.

Interest earning assets grew by 15 percent to Sh500.5 billion up from Sh433.9 billion driven by a 17 percent growth in net loan book to Sh320.9 billion up from Sh275 billion and a 13 percent growth in government securities to Sh179.6 billion up from Sh158.9 billion.

Mwangi attributed the growth in assets to the successful mobilization of deposits; “Our customer-centric and ecosystem approach to intermediation has given us an opportunity to target our customer’s horizontal and vertical value chains.”

“The branch is evolving to an SME advisory center as a majority of our customers move to more convenient self-service digital channels,” he added.