KCB Rwanda is in the final stages of launching a mobile banking product, a top official of the bank has said. The planned launch of KCB’s mobile banking product comes as a number of licensed commercial banks focus on launching similar products on the market.
The craze by most of the licensed commercial banks to embrace e-banking is a clear indicator of repositioning within the sector, brought about by increased competition among players especially with the impending entry of new entrants early next year.
Gloria Nyambok, Head of Banking at KCB Rwanda, told Business Times that its mobile banking product dubbed “KCB Connect” is in the final stages of being launched once all regulatory issues have been thrashed out.
“KCB Connect will be launched before the end of the year. The key product differentiation from similar offerings by our competitors lies in the fact that ours goes across the borders. This is the value proposition that “KCB Connect” brings to the market over and above what is available currently” Nyambok said.
KCB Rwanda says that the product is targeting all its personal banking customers who are now numbering 28,000.KCB Rwanda as the latest entrant into the local banking sector has a market share of 5 percent, according to Nyambok.
However, Nyambok is upbeat that KCB Rwanda is set to grow its market share to 7 percent early next year as its digs in to capture bigger clientele with its wide array of current and future products such as the planned new mobile banking product.
Nyambok added that “KCB Connect” is also targeting the rural segments of the economy. She added that “KCB Connect” is actually a product of the KCB Group, which is East Africa’s largest commercial banking operator in terms of branch network strength and market capitalization. KCB Group fully owns KCB Rwanda.
“Rural banking in Rwanda is still at its infancy and as we develop our agri-business proposition through work in progress this particular product will assist in such an endeavour”, Nyambok added
KCB Rwanda says that the product uptake is focussed on directly selling it to its in-house clients after the successes of its various tailor-made products. Among such new products KCB launched “KCB Twisungane” a product that was specifically made for the co-operative sector and “KCB Biashara Banking” which targets specifically the small and medium business enterprise segments.
Now in its second year of operations, KCB Rwanda is confident that its aggressive style in the market will enable it grow its market share as the local banking sector registers deeper levels of sophistication.
“Bearing the fact that there are so many unbanked citizens in Rwanda, KCB Rwanda believes that there is a very huge opportunity for locally licensed banks which are creative to bring on board such citizens in the formal banking fraternity. That being the case, we have no problem with competition and we welcome it. When increased competition comes local banking brands will be forced to think outside the box and it is the customer who is the ultimate winner”,
KCB Rwanda says that it looks forward to increased competition early next year. The bank recently received Rwf 2.6 billion from The KCB Group Rights Issue which it says it will use to strengthen the local mortgage industry.