How cooperative bank is promoting agent-based banking and other cost-effective delivery channels

Cooperative Bank of Kenya has been at the forefront of promoting financial inclusion in Kenya, by providing cost-effective delivery channels for banking services. One of the key ways the bank is achieving this is by promoting agent-based banking, a delivery channel that has proved to be very effective in Kenya’s rural areas.

Agent-based banking allows customers to access banking services through a network of agents located in their locality. These agents act as the bank’s representatives and are equipped with point-of-sale terminals, which they use to carry out transactions on behalf of customers. This approach has been successful in Kenya, as it allows the bank to expand its reach and provide banking services to customers who are unable to access physical branches.

By promoting agent-based banking, Cooperative Bank has been able to reduce the cost of service delivery, which translates to lower transaction costs for customers. Additionally, the bank has invested heavily in technology, which has enabled customers to access banking services through other cost-effective delivery channels such as mobile banking, internet banking, and ATMs.

Mobile banking has been particularly successful in Kenya, with Cooperative Bank leveraging the mobile money platform M-PESA to offer its customers mobile banking services. With M-PESA, customers can carry out transactions such as deposits, withdrawals, and transfers through their mobile phones, without having to visit physical branches or agents. This has made banking more convenient for customers, especially those who are located in remote areas.

In addition to promoting cost-effective delivery channels, Cooperative Bank has also been investing in financial literacy programs aimed at empowering customers to make informed financial decisions.

The bank offers financial education and training to its customers, aimed at promoting financial literacy and encouraging them to use banking services. This has been successful in encouraging customers to embrace banking services, which has contributed to the bank’s success in promoting financial inclusion in Kenya.

In conclusion, Cooperative Bank of Kenya’s efforts in promoting agent-based banking and other cost-effective delivery channels have been successful in expanding access to financial services in Kenya.

By investing in technology and promoting financial literacy programs, the bank has been able to provide banking services to customers who were previously excluded from the formal financial sector.

The success of Cooperative Bank’s approach to promoting financial inclusion should serve as an inspiration to other financial institutions to embrace similar strategies, to help achieve a more financially inclusive Kenya.