Bank targets diaspora cash in deal with KCB

• The bank will offer Western Union Money transfer services following the signing of an agency agreement with the Kenya Commercial Bank Group.
• The Western Union money transfer service has been in business for over 160 years and is available through more than 510,000 agent locations in 200 countries and territories.
• Diaspora remittances have become a key target for financial institutions that are banking on the need of people living abroad to have safe and convenient vehicles to send money back home for social and investment needs.
• The amount of money remitted from the diaspora has been growing with Central Bank of Kenya data showing that the country received remittances of Sh50.67 billion in the six months to June, rising from Sh34.14 billion in a similar period last year.

Jamii Bora Bank has joined a growing list of institutions tapping into the diaspora remittances market.

The bank will offer Western Union Money transfer services following the signing of an agency agreement with the Kenya Commercial Bank Group.

Under the agreement, Jamii Bora becomes a sub-agent, implying that for all transactions it conducts it will share revenues with KCB.

“We consider this as a step closer to providing one-stop shop,” said Jamii Bora chief commercial officer Timothy Kabiru.

Through the partnership, Kenyans in the diaspora will now have an alternative outlet to remit money back home. Jamii Bora currently operates 10 branches with four others to be opened by end of the year.

“This mutual partnership will provide us with additional income, business growth and a link to the over 3.5 million Kenyans in the diaspora,” said KCB group chief business officer Peter Kimondo.

The Western Union money transfer service has been in business for over 160 years and is available through more than 510,000 agent locations in 200 countries and territories.

Diaspora remittances have become a key target for financial institutions that are banking on the need of people living abroad to have safe and convenient vehicles to send money back home for social and investment needs.

Barclays Bank is expected to launch a new mobile money transfer system that will allow those living in the United Kingdom to send money straight to the recipient’s phone in Kenya.

Nation Media Group last week launched a money transfer service that targets the large number of diaspora visitors to its web sites to facilitate remittances.

The service dubbed NationHela allows customers to send and receive money from anywhere in the world with the funds being credited straight into their NationHela prepaid Visa cards.

The listed firm joined the likes of Safaricom in diversifying into the buoyant financial services sector.

The amount of money remitted from the diaspora has been growing with Central Bank of Kenya data showing that the country received remittances of Sh50.67 billion in the six months to June, rising from Sh34.14 billion in a similar period last year.

Jamii Bora Bank is currently working to raise an additional Sh500 million to bolster its statutory capital ratios and fund growth.

Apart from physical branch expansion, the bank also intends to improve its technological infrastructure to support its growth plan.