NCBA Group is aggressively reshaping its relationship with Kenya’s informal sector, moving away from traditional collateral-based lending in favour of a data-driven model designed to foster financial inclusion.
At the heart of this strategy, the bank is leveraging alternative data, such as mobile money transaction velocity and telecommunications usage, to assess creditworthiness.
This approach provides a pathway for individuals and small businesses that lack formal payslips or physical assets to access credit.
By deploying platforms like M-Shwari and the NCBA Now App, the lender has successfully integrated millions of previously unbanked Kenyans into the formal credit grid.
Consequently, customers can now secure near-instant loan approvals based on digital behavioral patterns, effectively bypassing the need for manual paperwork.
This strategic pivot serves as a cornerstone of NCBA’s broader sustainability and growth agenda.
Furthermore, the bank’s “Change the Story” initiative has evolved to prioritize financial resilience, pairing digital credit with tools for financial management and transparency.
By offering targeted products, such as business stock loans and digital asset financing, the bank is actively de-risking the informal sector.
Recent financial data underscores the efficacy of this approach. As of Q3 2025, digital loan disbursements surpassed the KES 1 trillion mark, representing a 35% year-on-year growth.
This surge highlights the scale of their digital-first engagement model.
Looking ahead into 2026, the bank has launched its “UBUNTU” strategy, which seeks to deepen trust and mutual growth by focusing on value-chain integration.
By identifying synergies between sectors, including agriculture, retail, and transportation, NCBA is tailoring financial solutions to support the long-term sustainability of informal enterprises.
Ultimately, this shift, underpinned by robust risk-based pricing and AI-driven analytics, positions NCBA not merely as a lender, but as a critical financial partner.
The bank aims to navigate the inherent volatility of the informal economy while maintaining a competitive non-performing loan (NPL) ratio.