Faulu Microfinance to open eight new branches

Faulu Microfinance is set to open eight new branches around the country at an estimated cost of Ksh.113 million.

Additionally the tier-one ranked micro-lender is set on refurbishing 15 of its 60 branches in a move which is seen as the bank’s consolidation of its physical presence.

While the move sits against recent trends by banks to cut fat by trimming their brick and mortar outlets, Faulu Managing Director Apollo says the investment sits within the lender’s quest of bettering customer experience.

“By expanding the Bank’s footprint and expanding customer touch points, we purpose to be more accessible and offer convenience to our growing customer base,”

The micro-lender is however not immune to the changing times having invested heavily on digital products including Faulu VISA cards and mobile banking.

Faulu’s keenness on physical presence is however exemplified by its recent piloting of agency banking and the subsequent roll-out of the model in April.

The UAP Old Mutual Group controlled microfinance joins a short queue of lenders who maintain keenness on physical presence include the Cooperative Bank which announced plans to scale its branches by five earlier this month.

The lender’s expansion is on the back of the posting of an 83 percent jump in net profits to Ksh.190.4 million in 2018 on the back of increased lending.

Faulu is taunting its expanded loan book and deposit base which averages at Ksh.21 billion and Ksh.20 billion to anchor the succession of the expansion strategy.

The new branches by the microfinance will be located in Ugunja, Kapenguria, Homabay, Kericho, Busia, Voi, Bondo and Limuru.