Co-operative Bank of Kenya

Anchored on our extensive pool of professional experience, coupled by our philosophy of creating platforms that support financial inclusion in Africa, Eclectics International partnered with Co-Operative Bank to provide a revolutionary solution.

Brief History

Established in 1965, Co-operative Bank of Kenya is the fourth largest tier one bank in Kenya with an asset base worth 449 billion assets.

Reported as the best financial performing bank in Kenya by Cytonn Investments Financial Year Q1 2020, the bank has the second largest customer base in Kenya and offers services to 100+ Saccos

Client Name
Co-operative Bank of Kenya
Industry
Financial Sector
Website
https://www.co-opbank.co.ke/

The Challenge

How to improve operational efficiency

The bank embarked on an aggressive transformation agenda driven by the need to improve operational efficiency, reduce operating costs and reposition their customer delivery options and offering. This required the Bank to increase usage of convenient alternative channels by migrating existing customers from physical branches and acquiring new ones through digital channels.

The bank was also keen on Financial inclusion as it is important for improving the living conditions of the unbanked, the low-income earners, SMEs and other vulnerable groups.

The Solution

Strategic partnership

Eclectics and Co-operative bank set out a strategic partnership where both parties would actively contribute to the digital strategy and implementation of mobile financial inclusion through the MCo-opCash product. This revenue share agreement would have both parties contributing to the growth of the product with Eclectics being the technology and innovations partner and the bank driving the business.

Eclectics and the Bank embarked on a 6-month project implementation that saw the development of a robust solution that allows among other services:

  • Self-service – Wallet Account Opening and Account Linking
  • Account Enquiries
  • Money transfer
  • Bill payments
  • Purchases
  • Remittances

Over the years the partnership has brought fruit to the following innovative solutions

  • Micro loans – Personal and Business
  • White labelling of mobile services for SACCOs
  • M-visa Merchant purchases
  • Corporate Bulk payments
  • …and many more

The Outcome

Tremendous Growth

Mco-op Cash Mobile Wallet has continued to support the growth of non-funded income with over 2.7 million active customers in 2015 to 5.6 Million registered customers and Ksh 16 Billion worth of mobile loans disbursed in Q1 2020

The solution has enabled the bank to achieve efficiency agenda of the ‘Soaring Eagle’ Transformation Agenda focusing on improved operational efficiencies through Innovative delivery systems.

The innovative digital products led to the Bank winning the esteemed award of Bank of the Year 2015 for Financial Inclusion in The Bankers Awards run by the Financial Times of London. The lender was also recognized for the mobile wallet which allows customers to do full banking, right from opening accounts to applying for and repaying loans, straight from their cell phones

The bank scooped the best bank in Kenya award at the Europe, Middle East and Africa (EMEA) Finance Awards in December 2019. The EMEA Finance Awards recognize financial institutions which through their client focus and sound leadership, continue to increase profitability, deliver affordable credit to the retail and wholesale markets and support local and transnational corporations do business