Ecobank Kenya Limited will remain focused on specialised market segments and deliver tailored services despite shifts in the financial services sector in Kenya.
Ecobank Group CEO Jeremy Awori said that the lender would continue playing in specialised segments often overlooked by rival players in the industry.
“We are looking at a more focused strategy because we have got very competitive banks. I don’t think trying to take on them head-on is competitively wise or achievable,” he told Business Daily in an interview on Tuesday.
Niche banking focuses on the unique requirements of customers, unlike the broad, one-size-fits-all approach of legacy or traditional financial institutions.
“In markets like Kenya, we know what we are good at. We can deliver transactional banking needs for our regional companies. We can collect payments across Africa through our systems. This is something many banks cannot do. These kinds of systems are quite unique to us,” Mr Awori said.
Ecobank Kenya is ranked by the Central Bank of Kenya (CBK) as the sixteenth largest lender in the country, with a market share of 1.1 percent, which places it well outside the club of big banks from a Kenyan perspective.
The Ecobank Group subsidiary closed last year with an asset base of Sh102.6 billion, total deposits of Sh95.8 billion held in 298,921 deposit accounts and 3,569 loan accounts.
Ecobank Transnational, the Togo-based owner of Ecobank Kenya, injected $27 million (Sh3.5 billion) into the local unit, bringing its total capital to Sh8.5 billion ($65 million), affirming its commitment to the Kenyan subsidiary.
The capital infusion also set Ecobank Kenya well on its way to meeting the CBK deadline of having at least Sh10 billion in core capital by December 31, 2029.
“Kenya is a hub for the East African region and hence an important business for us. We want to serve our customers across the region, hence why we have a base there,” Mr Awori said.
Ecobank Group sees itself suited to support corporate & investment banking, continent trade connections, and real-time payments in local currency from its expansive geographic base in Africa and three representative offices in China, London, and the United Arab Emirates (UAE). Ecobank Group also has a banking licence in Paris, France.
The lender does not, however, rule out mergers and acquisitions in the Kenyan market but notes that any such buyouts must align with its niche strategy.
“If the right opportunity came, then definitely we would consider it, but it has to make strategic sense for us. If you are going to go through the trouble of an acquisition, make it make sense,” Mr Awori said.
