NIC forges ahead with branch expansion despite industry cut backs

Despite the cut backs in the banking sector, NIC Bank plans to continue with branch expansion to reach customers.

The bank, which today opened its 41^st branch, expects strategic locationing to help it grow its foot print as well as double up customer acquisition.

NIC Bank Group chief executive officer John Gachora said the strategy fits within the bank’s retail banking expansion eyeing SME clients.

“The opening of this new branch was driven by a strong demand for our retail banking and Asset Finance offering in the area,” he said.

Several banks have in the past six months announced major cut backs in a bid to bring down costs.

While most have focused on laying off, Bank of Africa and Ecobank announced closure of a collective 21 branches while Equity Bank has frozen future branch expansion.

Banks are increasingly investing in mobile and digital banking in a move seen to efficiently reach customers.

Mr Gachora however said the right fit between branch and digital banking will in sustain the industry’s growth.

“Although the flight to digital channels is inevitable, it is our view that the branch is not dead.  Branches will remain an essential channel to attract and maintain customer relationships.  Retail banking success will be tied to the ability to offer the right products in an accessible and efficient manner,” Mr Gachora said.

In 2016, the bank opened seven new branches across the country. It has two branches in Uganda and four in Tanzania.

Report by Cynthia Nyabola