Equity goes digital in new bank expansion strategy

Equity Bank has suspended branch expansion as it shifts its focus to digital banking.

The shift comes as the bank positions itself to take advantage at the changing consumer trends with most customers preferring alternative channels to access financial services.

Equity Bank Chief Executive Officer James Mwangi said digital banking will give the bank an advantage over its competitors by leveraging on mobile banking.

“The era of physical contact with customers is over. Customers declared the death of the branch a long time ago, but we hadn’t realized,” Mr Mwangi said.

The bank has launched an enhanced banking dubbed EazzyPay that will allow customers to open accounts, transfer money and even make payments using their mobile phones.

Eazzy banking will give an easy, comprehensive, and secure experience while supporting a convenient lifestyle for Kenyans transacting both in the country and abroad.

“We have now lifted the experience of banking to virtual banking using our Equitel mobile capability .what we have done is develop an app that allows people download the banking connectivity on their phones. The mobile phones become the channel of operating banking,” he said.

Through the app customers can access up to Sh3 million in credit manage chama accounts and even complete transactions through merchants.

In the period ending September 2016, growth in equitel mobile loan disbursements accounted for 84 percent of all loan disbursements.

The bank will also be targeting a slice of the mobile payment market by signing up merchants to facilitate payments taking on Safaricom with its Lipa na M-Pesa service

Mr Mwangi however said there was space for competition in the market adding that banks will soon have to focus more on virtual banking.

“We are not fighting one another we are complementing. We are giving access to people who have bank accounts. As we said this is real digital money from bank accounts. It’s not about cash. There is nowhere we are talking about agents or cash. We are giving you the capability so it has no actual comparison,” he said.