KCB branch customers decline on digital shift

Customers waiting to be served in a KCB banking hall
Customers waiting to be served in a KCB banking hall. FILE PHOTO | NMG 

The average number of customers being served per day by each teller at KCB Group #ticker:KCB has dropped by 14 per cent to 75 as more customers opt for alternative channels of service.

The bank, with more than 15.7 million customers, said most customers broke away from brick-and-mortar banking in favour of mobile and agency banking in the six months to June.

During the period, only 13 per cent of total transactions happened at the lender’s branches down from 17 per cent last year. This means that 87 per cent of KCB’s transactions are now carried out at its agencies, via Internet, point-of-sale and ATMs.

The average number of branch transactions has also dropped from 10 million per day to about 8.5 million.

The trend is an indication that the bank’s focus on digital products to cut on costs is paying off.

Equity Group #ticker:EQTY, the bank with the largest customer base, also said in its latest financials that 97 per cent of its transactions are now outside the branch. Cooperative Bank #ticker:COOP puts its figure at 87 per cent.

Last year, Barclays Bank of Kenya #ticker:BBK sent home more than 100 workers and shut down seven branches to reflect the shift to alternative branches.