DTB in pact with Posta to boost agency banking network

Diamond Trust Bank (DTB) has tapped into Postal Corporation of Kenya (PCK)’s network to bolster its agency banking network to a 1000, up from the current 600.

DTB’s head of money transfer services and agency banking Kennedy Nyangweso said the pact with Posta will reduce the need to visit its branches and deepen the lender’s penetration.

The roll out will be executed in phases with 180 Posta outlets first, followed by an additional 220 in due course, said DTB.

“Customers will be able to carry out transactions through the Posta’s extensive agency network and hence reduce the need to visit the branches. We are taking the bank to the people wherever they are across the country,” Mr Otiende told the Business Daily in an interview Friday.

The lender has 60 branches with plans to expand its footprint to 90.

It launched its agency banking network in October 2012.

Posta general manager of operations Titus Juma said the partnership is a win-win for both institutions as it would allow DTB customers to access the lender’s services conveniently.

“The partnership will make it easy for (DTB) customers to access their bank accounts without having to walk to their respective bank branches,” said Mr Juma.

Under the deal, customers will be able to transact several services including cash withdrawals using a debit or ATM card, check account balances, make cardless cash deposits and utility bill payments as well as obtain mini statements.

Boost revenues

The State-owned corporation also has an agency banking deal with KCB, National Bank of Kenya, Barclays, Credit Bank and Chase Bank (In receivership).

The deals with lenders are expected to shore up Posta's dwindling revenues.

The banking industry regulator introduced the agency banking model in 2010 to help lenders provide services to customers in a cost effective manner, particularly those who are currently unbanked or under-banked.

It also allows commercial banks to appoint agents to offer services such as cash withdraws and deposits on its behalf, reducing foot traffic in banking halls.

The agents are linked to the bank’s systems electronically.

Several lenders have latched on to the service to widen their reach and grow business without the need to put up brick and mortar branches.

DTB’s market share grew to 5.32 per cent to rank seventh last year up from position nine - surpassing the five per cent mark used by the Central Bank of Kenya (CBK) to classify banks as large industry players.

The lender joined the class of large banks after its market share grew by 0.7 percentage points driven by new business from the collapsed Imperial Bank last year.