A Chase Bank customer uses an ATM at the lender’s head office in Nairobi
after the bank reopened Wednesday under the management of KCB.
Customers were allowed to withdraw up to Sh1 million. PHOTO | SALATON
NJAU
By DAVID HERBLING, hdavid@ke.nationmedia.com
In Summary
- Chase Bank's banking halls were opened on Wednesday at 9am and services such as mobile banking app Mfukoni, online banking, ATM services and debit card transactions went live.
- Services such as electronic funds transfer, credit cards, loan applications, overdraft, forex trading, foreign currency accounts, issuance of letters of credit and guarantees, however, remained unavailable.
Troubled lender Chase Bank reopened Wednesday with a
mixed bag of fortunes for its customers, who got access to their
deposits even as other key services remained unavailable.
The mid-sized lender’s banking halls were opened at 9am and
services such as mobile banking app Mfukoni, online banking, ATM
services and debit card transactions went live.
Key services such as electronic funds transfer,
credit cards, loan applications, overdraft, forex trading, foreign
currency accounts, issuance of letters of credit and guarantees,
however, remained unavailable as new receiver manager KCB took charge of operations.
The capping of withdrawals at Sh1 million of
deposits, meant that 167,290 account holders (equivalent to 97 per
cent) of total depositors have full access to their savings.
Chase Bank customers who spoke to the Business Daily
breathed a sigh of relief after they regained access to funds that have
been locked up for three weeks, but expressed concern over the
suspended services.
“It was very distressing for us. But they have
shown good faith in opening the bank even though we can’t access some
services,” said Teresa, a customer at Chase Bank’s Riverside Drive
headquarters.
But in a sign of the level of customer attachment
to the troubled bank, Teresa she said she would not consider moving from
Chase, citing overdraft facilities and LPO financing as some of the
services she frequently used at the mid-sized lender.
Another customer, Alex Wachira, said he was happy to see the bank open, saying the closure had hit his business hard.
“At least we are now happy. I’ve withdrawn using my
cheque book. I tried the Mfukoni app earlier in the day and its
working,” said Mr Wachira, an investment banker.
About Sh70 million had been withdrawn via Chase
Bank’s mobile banking app by midday, according to a source at the
distressed lender.
The Central Bank of Kenya on April 7, 2016
unexpectedly placed Chase Bank under receivership owing to liquidity
problems created by a run on the mid-sized lender from panicked
depositors.
Chase Bank’s reopening is under the management of KCB Group, working with Kenya Deposit Insurance Corporation.
Vincent Muriuki, a Nairobi-based businessman,
however expressed concern that the bank was not “100 per cent back” as
credit services were yet to resume. “I do tenders, so I mostly used bid
bonds,” he said.
A customer, who only identified himself as George,
said despite being greatly affected by the closure of Chase Bank, he
will not stop banking with them
No comments :
Post a Comment