Bank of Africa (BOA) has expanded its local network with two new branches targeting high spending customers with a suite of attractive retail products.
Demand for retail banking services in Africa has picked up growing by threefold over the last three decades, spurred largely by the emerging middle class.
The lender seek to tap into this opportunity with its new branches in Nairobi’s South B and Digo road in Mombasa- pushing up number of its branch network to 36.
It will be the first bank to open a branch in South B, an estate largely populated by Nairobi’s middle class households.
BOA Head of Retail Banking,Adam Kasaine, said the two branches will serve the bank’s growing network of customers against a backdrop of suitable retail products for the Kenyan market.
“This is a prime business and residential area that offers a market that will allow us to grow our reach in terms of customer acquisition, service delivery and eventually contribute to the bank’s overall growth in terms of deposits and loans,” said Kasaine.
According to recent estimates, retail banking in sub-Saharan Africa is projected to grow by 15 percent per annum by 2020, bringing the sector’s contribution to GDP to 19 percent from 11 percent in 2009.
He said the bank is banking on the strategic convenience it will offer by taking services closer to customers to bolster its presence in the local market.
Plans are also geared to boost its capital share through a major realignment of business strategy characterized by an aggressive expansion and focus on the retail market.
The bank plans to open 10 branches by the end of this year.