Co-op Bank to push 60pc of business to agents, mobiles

Co-operative Bank has reviewed its tariffs as it seeks to push 60 per cent of its transactions to agencies, ATMs and mobile money platform to reduce costs.

The bank has dropped the Sh20 charged on deposits made through an agent and Sh50 charged on rent and school fees payments.

Co-operative Bank director for retail banking Maurice Matumo said the use of agencies and mobile-money would allow staff to concentrate on other core activities.

“Reduction of customer numbers inside the branches will free staff time to provide more personal attention to customers, especially those who require greater face-to-face interaction, such as financial advice,” said Mr Matumo.

Co-op Bank has recently concluded a retrenchment programme driven by McKinsey aimed at reducing its high cost of operation.

The maximum daily amount that can be withdrawn through the ATMs has been doubled to Sh40,000 from Sh20,000.

Co-op aims to have the bulk of transactions conducted through ATMs, agencies and mobile banking platforms.

Analysts say as more customers use alternative channels transaction costs for banks are bound to fall.

“Cheaper banking channels (such as mobile and agency banking) should improve banks’ cost to income ratio to 43.5 per cent from 50.2 per cent currently,” said an industry report by London-based Exotix.