Over 1.7 billion adults worldwide have no access to traditional banking services or a bank account, yet access to credit and capital, secure savings, and efficient payment services enable small businesses to expand, create jobs, and drive economic development.
NCBA Bank sees technology, especially mobile technology as an integral part of day-to-day tools to bridge the financial services with over 1.1 billion out of the 1.7 billion persons without access to a bank account, owning a mobile phone.
By embracing an innovation-driven approach, NCBA Bank’s strategic investments in new core banking architecture, artificial intelligence (AI), cloud banking, and data analytics have not only enhanced operational efficiency but also significantly improved customer experiences and cybersecurity measures and doubled its reach to millions of users.
In its Full Year 2024 financial results, NCBA Bank Group PLC posted a profit after tax of KES 21.9 billion, a 2.0 per cent increase compared to KES 21.5 billion reported during a similar period in 2023. The Group`s role in driving financial inclusion through partnerships saw it cross the KES 1 trillion mark on digital loan disbursements, a 23 per cent increase year on year due to investments in digital transformation.
In partnership with Huawei and MuRong Technology, NCBA Bank implemented Kenya’s first digital core banking system with a distributed architecture. This next-generation system, built on a distributed DevOps framework, gave NCBA agile and robust technical support for its digital financial services, enabling the bank to provide seamless and efficient services to more customers.
Huawei and MuRong Technology developed a next-generation digital core banking system for NCBA Bank and migrated 80 million small deposit and loan accounts and consumer loan accounts to the new system. These increased NCBA’s digital capabilities and performance, allowing it to cross the KSH Trillion mark.
The core banking system uses distributed architecture and is built on a distributed Development and Operations (DevOps) framework, giving it more agility and robustness needed for NCBA Bank’s digital financial services.
On the first day of operations, the system migrated data from 60 million accounts all at once, reaching 420 Transactions Per Second (TPS) at the peak of system performance.
On robustness, the then Eric Muriuki Njagi, Group Director for Digital Business, NCBA said, “We have a view or a mission to be Africa’s most valued digital platform for financial services, which then means we are seeking to move to not just identify ourselves as a bank but identify ourselves as a marketplace upon which financial services are offered, upon which customers can then find innovations that impact positively their daily life. So that also was a primary motivation for the investment we made with HUAWEI and the continued collaboration with them.”
AI and Data Analytics for Personalized Services
It’s not just the core digital banking infrastructure that NCBA modernized. NCBA also adopted Oracle’s integrated marketing solutions allowing it to deliver personalized services, better attract and retain clients, and improve return on investment. Oracle’s AI and data analytics platforms have helped NCBA analyze customer behaviors and preferences, leading to more accurate profiling and tailored financial solutions.
Strengthening Cybersecurity
Banking aside, NCBA has made substantial investments to bolster its cybersecurity infrastructure. In 2023, the bank allocated nearly $31 million to secure it’s systems, migrate to the cloud and bolster customer experiences and security. Additionally, the bank implemented robust data quality management solutions to maintain information integrity and accuracy across its platforms.
In 2024, NCBA Bank invested another $5 million dollars in cyber to fortify its fire walls amid spiraling cases of cybersecurity in Kenya.
“We see this issue as a real problem across the banking industry, and because of that, it is important that, as a company, we put in the necessary infrastructure to deter such vulnerabilities,” said John Gachora, NCBA Bank MD after Kenya announced a 16.5 percent percent rise in cybersecurity incidents, with reported cases reaching 1.1 billion from March to June 2024, compared to 971.4 million during the same period in 2023.
Promoting Inclusive Finance
Cybersecurity measures aside, NCBA is committed to innovation and promoting financial inclusion in East Africa. Through collaborations with technology partners like Huawei, the bank has developed digital platforms that provide mobile loans and other financial services to previously unbanked populations. These efforts have transformed lives by offering accessible financial solutions to a broader segment of the population.
This month during the financial literacy month, NCBA has partnered with Family Media to educate masses on savings, investments, mortgages, unit trusts, real estate among others.
NCBA Bank is not only enhancing its service offerings but also setting a benchmark for innovation and financial literacy in the banking industry. The bank’s proactive approach to adopting AI, cloud banking, and data analytics positions it at the forefront of the financial sector’s evolution, and the financial literacy clinics ensures it meets the dynamic needs of its customers while maintaining robust and secure banking systems and promoting financial inclusivity to the last mile.
