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.
Equity will have to battle it out with the already established players in private banking business.
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.
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.
No comments:
Post a Comment