Time flies with great content! Renew in to keep enjoying all our premium content.
DTB to invest Sh4.5bn on outlets, digital platforms
DTB will spend up to Sh4.5 billion on enhancing its digital platform and opening new branches in the next two years as it looks to grow its customer base in the regional market. FILE PHOTO | NMG
The bank intends to invest Sh3.5 billion in its digital infrastructure by the end of next year, upgrading its platform and bringing onboard more skills.
DTB said that it is also targeting 20 new branches this year, and another 20 by 2024, at a cost of between Sh800 million and Sh1 billion.
The lender’s chairman Linus Gitahi said the firm is pursuing a hybrid approach where it will lean on the widened branch network to bring onboard more customers.
Tier one lender Diamond Trust Bank (DTB) #ticker:DTK will spend up to Sh4.5 billion on enhancing its digital platform and opening new branches in the next two years as it looks to grow its customer base in the regional market.
The bank intends to invest Sh3.5 billion in its digital infrastructure by the end of next year, upgrading its platform and bringing onboard more skills.
DTB said that it is also targeting 20 new branches this year, and another 20 by 2024, at a cost of between Sh800 million and Sh1 billion, which would bring its total branch count in Kenya to 100 and its regional footprint to 200.
The lender’s chairman Linus Gitahi said the firm is pursuing a hybrid approach where it will lean on the widened branch network to bring onboard more customers, who will then be introduced to its digital platforms which are now processing 88 percent of the lender’s transactions.
“You need to reach out there, get known, bank the people, and then have the conversation while inside about the need to go digital. We are looking at our branches as conversion centres for the sectors that aren’t doing digital banking,” said Mr Gitahi.
DTB’s new branches will therefore target areas where the lender has not had a presence before, including newly developed urban nodes around Nairobi.
The lender’s finance director Alkarim Jiwa said seven branches are already in different phases of construction, in Imara Daima, Kahawa Sukari, Kamakis, Greenspan Mall, Kayole, Ronald Ngala Street, and Likoni in Mombasa.
Other areas the lender is targeting include Kiambu town, Ruiru, Kenol, Murang’a town, and Kerugoya, as it looks to deepen its presence in Central Kenya.
The banking industry has in the past two years seen a big jump in the number of customers who are opting for digital channels instead of physically visiting branches, with the shift accelerated by the push to avoid physical cash as a Covid-19 prevention measure.
Lenders are still opening physical branches however to increase visibility and also serve small businesses and merchants whose trade is still largely cash-based.
