Of Equity Group Holdings ARRP Strategy

The Kenyan banking landscape is very dynamic and strategies may evolve over time in response to market changes, technological advancements, regulatory requirements and shifting customer preferences.

We have seen I&M Bank transition from iMara 1.0 to iMara 2.0, which supports the bank's strategy of deepening penetration into the retail and MSME segments through tailor-made customer solutions. The iMara 2.0 strategy has enabled the bank to anchor digitization at the core of its operations, as evidenced by the growth of the loan portfolio and higher Non-Interest Income in their financial statements. This year, as the bank turns 50, it is set to actualize its iMara 3.0 Strategy that is expected to continue the focus on innovation and growth, positioning I&M Bank as a leading player in the banking industry in Kenya and the wider East African region.

NCBA Bank has its ongoing 2020-2024 Growth Strategy that focuses on scaling retail banking, digital transformation and deepening banking leadership among other things. With this strategy, the bank has expanded its regional footprint across Kenya, Uganda, Tanzania, Rwanda and Ivory Coast serving over 60 million customers and employing over 3000 staff.

Absa Bank Kenya has been implementing various strategies to drive growth, innovation, and impact. These strategies include a focus on customer engagement, sales, and data utilization to enhance the banking experience. Additionally, the bank is committed to sustainability, with a focus on sustainable banking practices, renewable energy investments, and supporting the vision of Kenya becoming an industrial hub for Africa by 2030. This Bank uses the concept of ‘Africanacity’ to inspire its operations and emphasize its commitment to supporting customers and clients across the African continent. In this context, Africanacity reflects the unique character and strength of the African people, particularly their tenacity, ingenuity and ability to find solutions and get things done.

DTB (Diamond Trust Bank) on the other hand, is employing Customer Acquisition and Sales Strategy to drive growth and innovation. DTB Kenya is expanding its network by opening new branches to achieve rapid and meaningful customer growth. DTB is one of the most aggressive banks when it comes to physical expansion in Kenya. In 2023 alone, the bank was targeting over 40 branches in only one year.

Amongst these strategies, Equity Bank Limited stands out with the Africa Recovery and Resilience Plan (ARRP) that does not only focus on the bank itself but on the economic recovery and resilience in the African continent. The plan looks to bring in all relevant stakeholders together, including the United Nations agencies, governments of different African countries and the private sector.

At its core, the Plan encompasses six strategic pillars that challenge traditional banking models, shifting the focus beyond mere financial transactions to impactful partnerships. It is a? well-coordinated and comprehensive framework for implementation with the customer at the center:

1. Enhancing the natural resource ecosystem in agriculture and extractive industries?

2. Establishing manufacturing and logistics hubs

3. Facilitating trade and investment to broaden market access and support the mobility of resources?

4. Fostering the integration of small and medium-sized enterprises (MSMEs) -

5. Promoting social and environmental transformation?

6. Embracing a technology-enabled economy?

The initial phase of the plan, which is set to be achieved by the end of 2030, entails the following objectives:

1. Inclusion of 100 million online businesses and customers

2. Creation of a ripple effect with 5 million borrowing businesses and 25 million borrowing consumers

3. Generating 50 million jobs

By the end of FY 2022, Equity had recorded significant progress on its ARRP Goals:

1. 17.7 million customers (9% increase from 2021)
2. 265,868 borrowing businesses (106% increase from 2021)
3. 779,724 borrowing customers (1% increase from 2021)

In essence, these evolving strategies signify a broader movement toward collaborative development. They invite banks and stakeholders from diverse sectors to participate in reshaping the banking landscape for the greater good. As banking strategies evolve, the focus remains on creating a more prosperous and inclusive future for all.