Faulu Microfinance Bank has received over Ksh 900 million from its parent company, Old Mutual, to strengthen its operations and reposition its business model for long-term growth. The firm will use the funds to grow its digital banking offering and realign its distribution channels and human capital to drive sustainable growth.
Faulu Microfinance Bank says this part of its strategy to turn around its performance by becoming a leading traders bank and digital finance provider.
“Over the last 18 months, we have made significant investments in enhancing our digital capabilities. We are eager to become a leader in the digital finance space,” said Faulu Microfinance Bank CEO, Julius Ouma. “Many of the services that the bank offers are now available online, and our intention is to make our services more accessible for our customers. We will also be leveraging the support of our Holding company, Old Mutual, who have committed over KSh 900 million towards these operating model enhancements, to reposition Faulu as the digital bank of now!”
The Bank has also made a strategic decision to review its distribution channels in line with the new operating business model, supported by an active agency network of more than 70.
Faulu also announced that it would be growing its Micro, Small and Medium Enterprise (MSME) support offering, as well as implementing an enhanced distribution network. The bank sees a great opportunity to support amongst MSMEs as they represent the life blood of Kenya’s economy.
Faulu, established over 30 years ago, has become one of Kenya’s most recognisable financial services brands. The Bank, which forms part of Old Mutual East Africa Holdings Group, has initiated the business refocus in response to growing customer demand for digital services, as well as to reduce costs and become more competitive.
Old Mutual Holdings CEO, Arthur Oginga added: “With this change, we are both enhancing the Faulu service offering to our existing and future customer network, as well as positioning the business to deliver more value sustainably. Faulu has the full backing of Old Mutual in these endeavours, and we are confident that the refocus will drive shared value for all our stakeholders.”
Faulu Chairman, George Maina also expressed his confidence in the operational announcements, saying: “This refocus is also in line with our purpose of being our customers’ most trusted financial partner and helping them achieve their financial goals. It is also critical to the bank’s ongoing competitiveness in an ever-expanding financial services sector in Kenya. We are excited at the opportunity to refocus the Faulu business as we believe that it will deliver enhanced value for both our customers and our business.”