A consumer campaign by I&M Bank Kenya which waives transfer fees charges for bank to MPESA and Airtel Money transactions has enabled the lender to increase its customer base by 33% year-on-year (YoY) as per its results for the first half of 2024.
The ‘Ni Sare’ campaign waived transfer fees for bank to MPESA and Airtel Money transactions for various for personal account holders, including Club account, and PayGo account, as well as Solo Biz account.
According to the bank’s statement, the growth positions I&M Bank as one of the fastest-growing banks by customer numbers in the region, with over 600,000 customers now being served.
During the first half of the year, the Bank achieved a remarkable 113% growth in new to bank customer numbers compared to the same period last year, with the small businesses (MSME) customer base more than doubling during this time. Additionally, I&M Bank has strengthened its leadership in Trade Finance, advancing from sixth place in 2020 to the second place in the first half of 2024.
The ‘Ni Sare’ campaign, initially launched in early 2022 and aimed to attract personal account holders to I&M, was in April this year extended to SMEs – with the account dubbed Solo Biz account – in order to support small businesses and promoting financial inclusion in Kenya.
Eunice Kinyanjui, I&M Bank Kenya’s head of small business, said: “We gathered insights which resulted in us extending the free transfers to Solo Biz owners. Many entrepreneurs have not separated their business and personal financial bank accounts and miss out on solutions that can grow their business. With this proposition, Solo Biz owners now have access to digital Unsecured Business Loans, Stock Financing, LPO financing and Lipa na I&M Bank Paybill/Till number on our app.”
Gul Khan, the I&M Bank Kenya CEO, stated: “Early Last year, we listened to our personal customers on the high cost of living and their pain with paying fees for Bank to Mobile Wallet transfers and decided to make it free. We have now decided to significantly increase our support for Solo Biz owners and extend the same proposition to them. Small businesses in Kenya play a huge role in driving economic growth with their 40% contribution to GDP. As we celebrate 50 years of I&M Bank in Kenya, Solo Biz owners can now reduce their expenses and invest more into growing their business with the ‘Ni Sare Kabisa’ proposition.”
During the first half of 2024, I&M Bank Kenya posted a 21% increase in Profit Before Tax, driven by growth in Net Interest Income, Fee Income and a decline in loan loss provisions. The Bank also posted a 17% year-on-year increase in operating income, alongside a 12% rise in operating profit during the period under review.
Commenting on the results, Gul Khan, the I&M Bank Kenya CEO said: “We are pleased to record an impressive growth of 21% in Profit Before Tax in our first half of the year. Our focus on offering relevant financial solutions for Kenyans like free bank to M-PESA & Airtel Money transactions to individuals and Solo Biz owners (sole proprietors), strategic branch expansion and ecosystem partnerships has resulted in significant growth in our customer numbers and increase in deposit balances. We have also continued to invest heavily to provide the best digital customer experience with Digital Account Opening, Instant Short Term (30-Day) Unsecured Loan and the new Fikisha Goalz Savings products all available on our I&M Bank On The Go (OTG) App. As we celebrate our 50th anniversary this year, I would like to thank our customers for choosing I&M Bank and for placing their trust in us. Our commitment to customer centricity was reaffirmed by our first position ranking in the 2024 Kenya Banking Consumer Sentiment on Social Media Index by Data EQ with a score of 72.2%.”
I&M Bank is a major commercial bank headquartered in Kenya, with a growing regional presence currently extending to Mauritius, Tanzania, Rwanda, and Uganda. Since its inception in 1974, the Bank has evolved from a community financial institution to a publicly listed Kenyan-based regional commercial bank offering a full range of Corporate, Business, Premium Client and Personal banking services. I&M Bank is wholly owned by I&M Group which is listed on the Nairobi Securities Exchange. CDC Group owns approximately 10.68% of I&M Group.
I&M Group has a long-standing presence in the Kenyan market with presence in banking, insurance, and real estate. The Group offers a full range of banking and financial services covering Corporate & Institutional Banking, Personal & Business Banking, Bancassurance, Wealth Management, and Advisory services with presence spanning across 5 countries in Kenya, Uganda, Tanzania, Rwanda, and Mauritius.
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