Equity targets rich clients with ‘supreme’ branch

Corporate News

Equity Bank branch along Kenyatta Avenue in Nairobi, which offers Supreme Banking. Customers are required to maintain a minimum deposit of Sh200,000 to qualify for the service. Photo/Salaton Njau 

By DAVID HERBLING, hdavid@ke.nationmedia.com

In Summary

• Lender has opened 10th exclusive banking outlet in Nairobi targeting the wealthy.
• Customers are required to maintain a minimum deposit of Sh200,000 to qualify for the service dubbed “supreme banking.”
• The branches have classy lounges with free Wi-Fi internet, customers have personal relationship managers and a choice to operate their accounts in the local currency or any of the major global currencies including the US dollar, British pound and euro.

Equity Bank has opened its 10th exclusive banking outlet along Kenyatta Avenue, stepping up the industry’s race for deep-pocketed clients.

Customers are required to maintain a minimum deposit of Sh200,000 to qualify for the service dubbed “supreme banking.”

The branches have classy lounges with free Wi-Fi internet, customers have personal relationship managers and a choice to operate their accounts in the local currency or any of the major global currencies including the US dollar, British pound and euro.

They will also enjoy extended banking hours during weekdays as well as weekends.

Having made a name for banking the bottom of the pyramid, Equity’s foray into corporate and high net worth end of the market has come in measured steps that have over time put it head-to-head with rivals such as Barclays, Standard Chartered, CBA and CfC Stanbic, which pioneered premium bank branches in Kenya.

Equity last year opened seven supreme branches targeting deep-pocketed individuals as well as high-growth small and mid-sized enterprises (SMEs) with a view to growing its deposits and loan book.

“The bank started revamping the product offering to SMEs, opened seven supreme branches, recruited and is training additional relationship managers and officers,” said chief executive James Mwangi in the bank’s newly released 2013 annual report.

“Consequently, lending to SMEs increased by 28 per cent to Sh81.25 billion during the year,” he added, disclosing that the SME sector accounts for nearly half (46 per cent) of Equity’s loan book.

The shift to high-net-worth banking signifies Equity’s evolving strategy.

The Nairobi bourse listed-lender is seeking to grow income and mobilise cheap deposits given that private banking charges premium fees and commissions and requires significant minimum deposit balances.

The high-end banking suite located along Kenyatta Avenue becomes the seventh in Nairobi and adds to existing branches in Thika and Mombasa.


Equity will have to battle it out with the already established players in private banking business.

READ: Equity Bank beats competitors in local operations

The bank started off as a building society and was granted a licence by the banking regulator in 2004 to operate as a commercial lender.

Mr Mwangi fashioned Equity as a mass market retail lender with no monthly charges on bank customer accounts, zero minimum operating balance, ledger fees or account maintenance fees.

The positioning saw it grow rapidly to Kenya’s biggest lender by client numbers with a total of 8.6 million customers, accounting for almost half of Kenya’s depositors.

Private banking solutions with sleek halls and personalised services are targeted at wealthy customers who don’t want the hassle of queuing for services.

CBA’s private banking facility targets salaried individuals with a net monthly income of at least Sh300,000 while those running current accounts are required to maintain a minimum balance of Sh1 million

The high net worth customers get preferential lending terms, investment advice, a dedicated relationship manager and access to executive airport lounges around the world. 

Barclays has “prestige banking” while KCB’s has “advantage banking.”

StanChart’s priority banking customers get access to dedicated tellers, travel insurance as well as a range of golf, travel, lifestyle, entertainment and private club access privileges.

CfC Stanbic has a private banking facility that integrates banking and wealth advisory services.