Banks turn to sharing of resources, agents to cut rising costs

Over two million Postbank customers can now get chequebooks and process cheques through ABC Bank’s clearing house.

This follows the signing of an agreement between the two institutions that will also allow ABC Bank customers to access financial services through Postbank’s agency banking.

Postbank does not offer chequebooks to customers as it was established as a savings bank. During the launch of the platform in Nairobi yesterday, Investment Secretary Esther Koimett said such partnerships and use of new technology will deepen access to financial services in the country.

Koimett said that by banks opening up their systems and networks to each other, they would meet their operations and business targets.

“This is not only cost-saving but also a mutually beneficial arrangement that will make payment system more accessible, especially among lower income households and smaller enterprises,” she said.

Postbank Managing Director Nyambura Koigi said the sharing of resources such as infrastructural facilities between companies is the best way to improve profitability and achieve sustained growth.

“This is the kind of innovation banks should have to leverage on asset and competitive advantage on branch network to increase savings,” she said.

Ms Koigi said they ould open up more networks for others in the industry to mobilise savings.

”Studies on financial access indicate that more Kenyans are unbanked and opening facilities for customers to get services is one way of deepening financial inclusion,” she noted.

ABC Bank Managing Director Shamaz Savani noted that technology, collaboration and sharing of resources will create the synergy to grow business for the industry.

“Institutions like ABC strongly believe in partnerships and want to open up and share resources where it would be beneficial,” he said.  “It would have cost a tremendous amount to open a branch and look at the human resources expenses,” he noted.