By Jackson Okoth
The Government will review the Kenya Post Office Savings Bank Act, to expand the mandate of the State-owned PostBank Limited.
"This is will enable the bank offer affordable and a wider range of products and services to its clientele, Treasury PS Joseph Kinyua said on Wednesday evening during the launch of Postbank’s automated services, held at a city hotel.
Postbank‘s mandate is restricted by the Kenya Post Office Savings Bank Act 493B, which confines its operations to savings mobilisation and deposit taking.
A narrow environment notwithstanding, Postbank has been undergoing intense restructuring and transformation to stay on with the competition.
"Postbank will undergo a restructuring process that will enable it offer foreign exchange and credit services within the next one and a half years," said Kinyua.
Migrated
Under a new business model, Postbank has migrated its customers to a more efficient delivery platform, supported by its cash x-express debit card and point of sale terminals.
In addition to its Automated Teller Machines (ATMs), these terminals have been put up inside the banking halls to enable customers deposit and withdraw cash.
"We are the first bank to use the POS terminals.
This will significanlty increase the speed and efficiency with which the bank’s staff will serve the customers," Ms Nyambura Koigi MD Postbank said.
Restructuring at Postbank is taking place when intense competition exists in the banking sector, especially on the retail end of the market.
