Sidian Bank has opened a new branch in Kamakis, Ruiru, in Kiambu County, raising its count to 43, bucking a trend of banking hall closures as lenders shift to digital platforms.
The bank, which opened its 42nd branch in the country last year in January said Tuesday its decision is informed by the need to “grow its customer base and take services closer to them.”
Sidian Bank has opened a new branch in Kamakis, Ruiru, in Kiambu County, raising its count to 43, bucking a trend of banking hall closures as lenders shift to digital platforms.
The bank, which opened its 42nd branch in the country last year in January said Tuesday its decision is informed by the need to “grow its customer base and take services closer to them.”
“The branch which is along Eastern bypass is a step further in offering custom-made solutions to the bank’s growing customers,” said Sidian Bank chief executive Chege Thumbi in a statement Tuesday.
Lenders including SBM Bank Kenya, Stanbic, Equity, and Stanchart have closed a number of their branches in the last few months headlining the shift to digital banking in place of the traditional brick-and-mortar.
Sidian Bank opens 43rd branch in Kamakis
This comes at a time 96 percent of transactions happen outside the bank branches according to Central Bank of Kenya (CBK) governor Patrick Njoroge. This is up from 91 percent before the Covid-19 pandemic struck.
This as many lenders roll out digital banking platforms, which have in turn cut the need for customers to visit brick-and-mortar outlets for services such as balance inquiry, settling bills, and opening of accounts.
But Mr Thumbi has defended the move saying that opening a new physical branch in Kiambu County will allow the bank to reach out to more customers in the area through the brick–and–mortar.
“Our expansion will enable us to reach a wider market and therefore expand our customer base while supporting our customers in the area. Customers had to go to town or Thika to access banking services, this branch bridges access to services for our clients along Thika road and its environs,’’ he said.
“Sidian Bank is well known as an SME bank, providing solutions that work for businesses and entrepreneurs. We saw it as an opportune time to expand our market due to the growing potential in the Kamakis area over the last couple of years.”
The rise of digital banking has allowed lenders to reach customers directly, reducing the need for physical locations in a move that has also led to massive job losses among clerical staff.
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