ECB, Postbank join hands to grow reach

Equatorial Commercial Bank acting managing Shamira Dostmohamed (left) and Post Office Savings Bank acting managing director Anne Karanja during the launch of Agency Partnership at Post Bank in Nairobi on April 7, 2015. PHOTO | SALATON NJAU 

In Summary

• The agreement brings to nine the number of commercial lenders that have partnered with Postbank to offer banking services without having to establish their own physical branches.
• Under agency banking, financial institutions do not have to open shop in areas where they are unrepresented but can contract third parties to offer some of their services such as account opening, balance enquiries, cash deposits and withdrawals.

By Nation Correspondent
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Postbank is increasingly emerging as a major beneficiary of commercial lenders’ bid to spread their geographical reach through agency banking  considered the best alternative delivery channel.

Equatorial Commercial Bank (ECB) has become the latest to sign up an agency agreement with Postbank in a deal that will see the former’s customers access services through the latter’s 102 branches nationwide.

The agreement brings to nine the number of commercial lenders that have partnered with Postbank to offer banking services without having to establish their own physical branches.

“We are leveraging on the teller point of sale system, which allows us to inter-link with other systems,” said  Postbank acting Managing Director Anne Karanja yesterday.

Under agency banking, financial institutions do not have to open shop in areas where they are unrepresented but can contract third parties to offer some of their services such as account opening, balance enquiries, cash deposits and withdrawals.

“Cognisant of the changes we underwent over the last quarter, including the acquisition by Mwalimu Sacco, such partnerships are going to be the norm with ECB,” said acting Managing Director Shamira Dostmohamed.