By Patrick Githinji
The Consolidated Bank of Kenya will spend over Sh100 million on rebranding ahead of plans to privatise the institution before end of December.
The bank’s CEO David Wachira said the process was on and reflects the bank’s growth, transformation and commitment to deliver a unique retail experience to customers.
Mr Wachira spoke yesterday on the sidelines of a ceremony to unveil a new logo and brand proposition in Nairobi.
He said the rebranding will take about two years.
At the same time, the bank announced plans to open branches in Nakuru, Eldoret and Nyahururu. So far, the bank has 12 branches in the country.
"We are also looking into agency banking. We want a third party agent to increase our coverage where the bank has no presence. Already, we have identified more than 350 potential agents to be engaged immediately after CBK approval of the service," he said.
Agency Banking
Central Bank of Kenya (CBK) Governor Njuguna Ndung’u said the rules that will guide third party agents have been published and they anticipate a high uptake by banks to reach the unbanked.
"The agency banking models was designed to assist commercial banks to lower their cost of offering services while at the same time improving their earnings. Besides, more Kenyans are offered an opportunity to access financial services," Prof Ndung’u explained.
The new logo and brand proposition resonates with the banks’ planned transformation in terms of technology, people, processes and channels outlined in the banks’ five year strategic plan.
However, the rebranding exercise is also expected to boost the banks’ rising profitability which increased by 37 per cent in the face of increased competition and slow economic growth.
Last year, Consolidated Bank recorded a pre-tax profit of Sh116 million against Sh84 million in the past year. Wachira said the bank will focus on customer satisfaction through a unique, flexible and innovative approach. Consolidated Bank is fully owned by the Government — 51 per cent is held by Treasury through the Deposit Protection Fund and 25 per cent is held by parastatals.